Forget Rivian Automotive Inc (RIVN): 5 EV Stocks to Buy for Long-Term Gains

4. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 51   

Ford Motor Company (NYSE:F) is an automobile manufacturer based in Michigan. The launch of the Ford Lightning EV, the Maverick Pickup, and the Ford Mustang Mach-E over the past few years has helped the company develop a solid reputation in the EV space. However, orders for new cars have been hit in the last few months as a chip shortage hits production. Ford Motor Company (NYSE:F) also sells an EV-powered commercial van named the Ford E-Transit. The company recently said demand for commercial EVs will remain strong in 2022. 

Ford Motor Company (NYSE:F) is one of the most popular auto firms among hedge funds. At the end of the third quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Ford Motor Company (NYSE:F). 

In its Q1 2020 investor letter, Greenlight Capital Fund, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:

“General Motors (GM) was a disappointment. The damage from last year’s strike consumed most of the cash flow GM would have otherwise generated in 2019. We had expected a strong bounce back in earnings and cash flow in 2020, but the annual guidance, while meeting Wall Street expectations, was worse than we expected. Further, the cash burned during the strike needed to be re-earned in order to protect GM’s investment grade rating. Pre-crisis, there would have been, at best, a minimal share repurchase late in the year. At the analyst day, our hopes that 2020 would finally be the year were dashed. We sold our stock. Over our five-year holding period, we made a 9.6% IRR on GM. In the difficult environment, its most comparable peer, Ford, lost about half its value.”