Jim Cramer Says You Should Avoid These 5 Stocks

4. Rivian Automotive Inc (NASDAQ:RIVN)

Number of Hedge Fund Investors: 32

Jim Cramer recently said during his program that he’d rather buy a Rivian car than the stock. Cramer said he’s worried about Rivian Automotive Inc’s (NASDAQ:RIVN) balance sheet. Jim Cramer has been having mixed thoughts about Rivian Automotive Inc (NASDAQ:RIVN) over the past several months. In November last year Cramer said that he would prefer Rivian Automotive Inc (NASDAQ:RIVN) shares over Lucid. In December Cramer said that Rivian Automotive Inc (NASDAQ:RIVN) is a “survivor” in the EV space. But Cramer’s latest comments on Rivian Automotive Inc (NASDAQ:RIVN) show that he wants investors to avoid the stock for now.

As of the end of the last quarter of 2023, 32 out of the 933 funds in Insider Monkey’s database were long Rivian Automotive Inc (NASDAQ:RIVN). The biggest stake in Rivian Automotive Inc (NASDAQ:RIVN) is owned by D. E. Shaw which owns a $395.2 million stake in Rivian Automotive Inc (NASDAQ:RIVN).

Here is what Baron Global Advantage Fund has to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q3 2023 investor letter:

“Shares of Rivian Automotive, Inc., a U.S.-based electric vehicle manufacturer, continued their volatile trading, and after declining during the first half of 2023, rose 45.7% during the third quarter. Rivian’s unit economics are improving as a result of several factors: i) the company’s production rate is increasing, which enables it to better absorb fixed costs; ii) Rivian is ramping-up the usage of more price effective technologies, such as LFP batteries and its in-house developed motor, Enduro; and iii) the company is benefiting from renegotiated supplier agreements, as its scale and purchasing power have significantly increased over the last few years. Management expects continued progress in profitability ahead as Rivian further scales production. We remain shareholders and believe that the release of Rivian’s new smaller SUV dubbed R2, which is planned for early 2024, would enable the company to compete in the higher volume SUV segment, and significantly expand its addressable market. On the liquidity front, we expect the company to raise additional funds to support its longer-term business plans.”