In this article, we will discuss 5 EV stocks that will benefit from the Climate Change Bill 2022. If you want to read about the details of the bill, go directly to 10 EV Stocks that Will Benefit from Climate Change Bill 2022.
5. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 29
Rivian Automotive, Inc. (NASDAQ:RIVN) is an Irvine, California-based EV company.
Experts expect certain variants of Rivian R1S SUV and Rivian R1T pickup trucks to be eligible for the extended tax credit proposed by the Climate Change Bill. Although only a few variants meet the eligibility criteria at the moment, Rivian Automotive, Inc. (NASDAQ:RIVN) is working on introducing lower-priced models before 2025 under the R2 range.
Presently, Rivian Automotive, Inc. (NASDAQ:RIVN) has a manufacturing facility in Normal, Illinois. The company intends to open a second manufacturing facility near Atlanta, Georgia by 2025. The new facility will be focused on producing the more affordable R2 range. Like Fisker, Rivian Automotive, Inc. (NASDAQ:RIVN) has shown the willingness to enter into a buyer’s agreement to circumvent the impact of the Climate Bill on higher-priced models. Rivian Automotive, Inc. (NASDAQ:RIVN) is also expected to benefit from the CHIPS bill that will provide incentives worth billions of dollars to semiconductor makers in the US. Shortage of semiconductor chips has caused significant delays for EV companies like Rivian Automotive, Inc. (NASDAQ:RIVN).
Here’s what Baron Funds said about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q1 2022 investor letter:
“Rivian Automotive, Inc. designs, manufactures, and sells consumer and commercial electric vehicles. Shares of Rivian continued its volatile trading following the stock’s IPO in late 2021, declining 52% in the first quarter as investors rotated out of fast-growing long-duration stocks and as industrywide supply-chain issues delayed Rivian’s production ramp. In addition, even while other automotive companies raised prices due to inflationary pressures, Rivian launched a price increase campaign that was not well communicated and, as a result, was met with dissatisfaction by existing reservation holders. While this was an unforced error, the company quickly corrected course, reversing its decision to raise prices for existing reservations, while maintaining the increase on new buyers (which has not caused a material impact to demand). We retain conviction in the shares given management’s vision, Rivian’s product positioning, the company’s relationship with Amazon.com, and the company’s strong balance sheet, which will help it overcome the current challenges while taking advantage of the long-term opportunity as the market transitions to electric vehicles.”