5 Most Undervalued EV Stocks To Buy According To Hedge Funds

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

Number of Hedge Fund Holders: 37

Rivian Automotive, Inc. (NASDAQ:RIVN) is an American auto manufacturer headquartered in California. The company launched its IPO in November 2021, raising over $13.5 billion in financing. Rivian Automotive, Inc. (NASDAQ:RIVN) primarily focuses on electric vehicles.

Rivian Automotive, Inc. (NASDAQ:RIVN) posted a non-GAAP loss per share of $1.08 while the market expected it to report a net loss of around $1.39 per share. The company’s revenue increased by nearly 208% to $1.12 billion. 

In the second quarter, Rivian Automotive, Inc. (NASDAQ:RIVN) delivered 50% more vehicles than Q1 2023 after producing 13,992 units and delivering 12,640 vehicles. The company also boosted its production guidance for 2023 from 50,000 units to 52,000 units.

Baron Funds made the following comment about Rivian Automotive, Inc. (NASDAQ:RIVN) in its second quarter 2023 investor letter:

“During the second quarter, we also added to our position in EV manufacturer Rivian Automotive, Inc. (NASDAQ:RIVN). After a complex period since the company’s IPO, in which Rivian tried to ramp multiple vehicles simultaneously while struggling to overcome unprecedented supply-chain bottlenecks, the company seems to have turned the corner. Production is now starting to scale up, which should help the company improve its plant utilization and subsequently help gross margins. The company is making notable progress in cost improvements by renegotiating with its suppliers, utilizing its larger scale to get better pricing, as well as, incorporating various technological advancements that would improve its cost structure while also improving the vehicles’ performance (for example it’s Enduro drive unit which is progressing ahead of plan).”