5 Best Electric Car Stocks To Buy Now

In this article, we will discuss the 5 best electric car stocks to buy now. If you want to explore similar stocks, you can also read 15 Best Electric Car Stocks To Buy Now.

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

Number of Hedge Fund Holders: 30

Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the most promising electric vehicle companies in the world and is poised to disrupt the traditional automotive industry. The company has some of the most advanced EV technologies in the industry and its electric pickup trucks, the R1T and R1S, are among the most next-gen battery-electric trucks on the market. Rivian Automotive, Inc. (NASDAQ:RIVN) is ranked high among the best electric car stocks to buy now.

On November 9, Rivian Automotive, Inc. (NASDAQ:RIVN) posted earnings for the third quarter of fiscal 2022, in which the company beat EPS estimates by $0.26. The company’s revenue for the quarter amounted to $536 million, up 53,500% year over year.

On November 29, Evercore ISI analyst Chris McNally took coverage of Rivian Automotive, Inc. (NASDAQ:RIVN) with an In Line rating and a $35 price target.

At the end of Q3 2022, 30 hedge funds held stakes in Rivian Automotive, Inc. (NASDAQ:RIVN) worth $1.96 billion. This is compared to 35 positions in the previous quarter with stakes worth $1.59 billion. As of September 30, Coatue Management is the top investor in the company and has a stake worth $644.95 million.

Here is what Baron Funds had to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its third-quarter 2022 investor letter:

“Rivian Automotive, Inc. (NASDAQ:RIVN) designs, manufactures, and sells consumer and commercial electric vehicles (EVs). Shares of Rivian were up 28% in the third quarter driven by second quarter production that beat expectations, a new partnership with Mercedes Benz, and the positive potential impact of the recently announced Inflation Reduction Act on accelerating broader EV adoption. While Rivian continues to be impacted by supply-chain issues that are causing delays in its production ramp, it is addressing the 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). The company also recently reported stronger than-expected third quarter production results while reiterating its annual guidance of producing 25,000 units. As semiconductor shortages ease, we believe the company will be able to rapidly ramp its production. While we retain conviction in the shares given the company’s vision, product positioning, relationship with Amazon.com, and strong balance sheet, we have reduced the size of our position.”

4. Ferrari N.V. (NYSE:RACE)

Number of Hedge Fund Holders: 31

Ferrari N.V. (NYSE:RACE) has one of the most recognizable brands in the world, with a strong heritage of performance and luxury. The company has consistently launched successful products, from the LaFerrari supercar to its F8 Tributo. Ferrari N.V. (NYSE:RACE) has increased its revenue and profits steadily over the last few years, and the company has a strong balance sheet with ample cash. Ferrari N.V. (NYSE:RACE) has free cash flows of over EUR 601 million. The company is investing heavily in research and development to develop new technologies, such as hybrid powertrains and autonomous driving. The company is on track to launch its first all-electric car by 2025, and given its rich history of leadership, Ferrari N.V. (NYSE:RACE) is expected to remain at the forefront of the electric car industry. The stock is ranked among the best electric car stocks to buy now.

Wall Street is bullish on Ferrari N.V. (NYSE:RACE). On October 27, HSBC analyst Edoardo Spina upgraded the stock to Buy from Hold.

At the close of Q3 2022, 31 hedge funds were long Ferrari N.V. (NYSE:RACE) and disclosed positions worth $1.02 billion. This is compared to 33 positions in the preceding quarter with stakes worth $870.3 million. As of September 30, Darsana Capital Partners is the dominant shareholder in the company and has stakes worth $231.25 million.

3. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 47

America’s iconic carmaker, Ford Motor Company (NYSE:F) is among the best electric car stocks to buy now. Ford Motor Company (NYSE:F) has invested significantly in mobility services, and electric vehicles. These investments position the company to benefit from the growing trend of technology-driven transportation solutions. Some of the company’s most popular electric vehicles include the Mustang Mach–E and the award-winning F–150 Lightning.

Ford Motor Company (NYSE:F) has a strong cash position and is currently trading at bargain levels. As of December 7, the stock has a trailing twelve-month PE ratio of 5.85. The company has free cash flows of over $2.6 billion. On November 30, Citi analyst Itay Michaeli raised his price target on Ford Motor Company (NYSE:F) to $14 from $13 and maintained a Neutral rating on the shares.

At the end of the third quarter of 2022, 47 hedge funds were bullish on Ford Motor Company (NYSE:F) and disclosed stakes of $1.18 billion. This is compared to 46 positions in the previous quarter with stakes worth $608.7 million. The hedge fund sentiment for the stock is positive. As of September 30, Fisher Asset Management is the top investor in the company and has a position worth $503.6 million.

Here is what Leaven Partners had to say about Ford Motor Company (NYSE:F) in its third-quarter 2022 investor letter:

“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Ford (NYSE:F), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%^[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”

2. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 74

General Motors Company (NYSE:GM) is another leading automaker that is making strides in the electric vehicle industry. The company has poured hefty investments into the development of electric vehicles which has resulted in the release of several successful models including the GMC Hummer EV, Cadillac LYRIQ, and the Chevrolet Bolt EV. General Motors Company (NYSE:GM) is well-positioned to benefit from the secular growth trends in the electric vehicle industry and is ranked high among the best electric car stocks to buy now.

On October 25, General Motors Company (NYSE:GM) posted strong earnings for the fiscal third quarter of 2022. The company reported an EPS of $2.25 and outperformed consensus by $0.37. The company’s revenue for the quarter amounted to $41.89 billion, up 56.42% year over year. Shortly after the company’s earnings release, JPMorgan analyst Ryan Brinkman raised his price target on General Motors Company (NYSE:GM) to $59 from $58 and remained Overweight on the shares.

At the close of the third quarter of 2022, 74 hedge funds were eager on General Motors Company (NYSE:GM) and held stakes worth $3.32 billion. This is compared to 75 positions in the previous quarter with stakes worth $3.44 billion. As of September 30, Berkshire Hathaway is the largest shareholder in General Motors Company (NYSE:GM) and has stakes worth $1.60 billion in the company.

Here is what Diamond Hill Capital had to say about General Motors Company (NYSE:GM) in its third-quarter 2022 investor letter:

“Most recently, we initiated a position in General Motors Company (NYSE:GM), one of the largest automakers in the United States. Over the past several years, GM has taken steps necessary to focus the company on the most profitable segments and move into position to compete in an electrified and autonomous world. With the recent rise in interest rates there was a meaningful selloff in the auto industry, which presented us an attractive entry point to a name we know well.”

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 88

While many competitors have emerged in recent years, Tesla, Inc. (NASDAQ:TSLA) is among the most dominant electric car companies in the world. The company is a pioneer in the space and has a first-mover advantage. Moreover, Tesla, Inc. (NASDAQ:TSLA) has an impressive range of vehicles that appeal to a wide range of consumers and the company is rapidly expanding its presence in the market. Tesla, Inc. (NASDAQ:TSLA) has also established a strong presence in the self-driving car industry with its Autopilot technology. Tesla, Inc. (NASDAQ:TSLA) is a clear leader in the electric vehicle market and is placed on our list of the best electric car stocks to buy now.

On November 23, Citi analyst Itay Michaeli raised his price target on Tesla, Inc. (NASDAQ:TSLA) to Neutral from Sell and raised his price target to $176 from $141.33. This December, Piper Sandler analyst Alexander Potter reiterated an Overweight rating and his $340 price target on Tesla, Inc. (NASDAQ:TSLA).

At the end of Q3 2022, 88 hedge funds disclosed stakes in Tesla, Inc. (NASDAQ:TSLA). The total value of these stakes amounted to $7.39 billion, up from $7.17 billion in the previous quarter with 73 positions. The hedge fund sentiment for the stock is positive. As of September 30, ARK Investment Management is the most prominent investor in the company and has a position worth $1.08 billion.

Here is what Alger Capital had to say about Tesla, Inc. (NASDAQ:TSLA) in its third-quarter 2022 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer with a significant technological lead in its large and rapidly growing addressable market. Shares outperformed during the quarter despite covid 19 shutdowns at the company’s shanghai production plant early in the period. During this quarter, the company also ramped up production at its newer Germany and Texas plants. While investors were aware of these challenging variables, the company’s quarterly results exceeded expectations thanks to lower-than-expected operating expenses. Investors are aware that ramping up electric vehicle production is challenging and recognize it’s difficult to estimate production rates.”

You can also take a look at 12 Very High Yield Dividend Stocks To Buy and 10 Best Undervalued UK Stocks To Buy Now.