5 Best Auto Stocks To Buy Now

4. Rivian Automotive, Inc. (NASDAQ:RIVN)

Number of Hedge Fund Holders: 35

Rivian Automotive, Inc. (NASDAQ:RIVN) is a California-based company that designs, develops, manufactures, and sells electric vehicles and accessories. On October 11, after meeting with company management, Mizuho analyst Vijay Rakesh told investors that Rivian Automotive, Inc. (NASDAQ:RIVN)’s vehicle recall is “relatively minor” and that its manufacturing lines have already been updated. The analyst added that the headlines are “worse than reality” and kept a Buy rating on the shares with a $65 price target. Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the premier auto stocks to buy now. 

According to Insider Monkey’s second quarter database, 35 hedge funds held stakes worth $1.6 billion in Rivian Automotive, Inc. (NASDAQ:RIVN), compared to 29 funds in the last quarter worth $4 billion. Philippe Laffont’s Coatue Management is the largest stakeholder of the company, with 18.8 million shares valued at $486 million. 

Here is what Baron Fifth Avenue Growth Fund has to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q2 2022 investor letter:

“Rivian Automotive, Inc. designs, manufactures, and sells consumer and commercial electric vehicles. Shares of Rivian declined 48.2% in the second quarter as investors continued rotating out of long-duration assets and have become increasingly concerned about capital intensity and cash burn.

At the same time, Rivian continues to be impacted by supply chain issues which are causing delays in its production ramp. Rivian is addressing those challenges by diversifying its supply chain to alleviate shortages while also consolidating the number of variants in development to reduce cash burn (the company guided that current cash will be enough to support the company’s future platform launch ‘R2’ in 2025). Rivian recently reported stronger-than-expected second quarter production numbers while reiterating its annual guidance of producing 25,000 units.

As semiconductor shortages ease, we believe that the company will be able to rapidly ramp its production. We retain conviction in the shares given management’s vision, Rivian’s product positioning, the company’s relationship with Amazon.com, and its strong balance sheet. As of the end of the first quarter, Rivian had $17 billion of cash and cash equivalents, which will help it overcome the current challenges while taking advantage of the long-term opportunity as the market transitions to electric vehicles.”