5 Best New Tech Stocks to Buy Now

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

IPO Date: November 9, 2021

Number of Hedge Fund Holders: 35

Rivian Automotive, Inc. (NASDAQ:RIVN) is an Irvine, California-based EV manufacturer.

In a note issued on September 9, Emmanuel Rosner at Deutsche Bank shared that he considers the joint venture with Mercedes Benz as a positive development for Rivian Automotive, Inc. (NASDAQ:RIVN). The analyst thinks that it will allow the company to enter the European market at a lower cost of investment. Furthermore, this will provide Rivian Automotive, Inc. (NASDAQ:RIVN) with more credibility in the area of automobiles and EVs. Rivian Automotive, Inc. (NASDAQ:RIVN) will be able to benefit from the strong supply chain network and manufacturing presence of Mercedes Benz to expand its presence across Europe swiftly.

Here’s what Baron Funds said 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.”