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Lithia Motors, Inc. (LAD): Billionaire David Abrams Has A Bullish Outlook on This Stock

Lithia Motors, Inc. (NYSE:LAD) is one of the 12 Best Stocks to Buy According to Billionaire David Abrams.

Lithia Motors, Inc. (NYSE:LAD) is a long-term stock pick of Abrams Capital Management. It has featured in the 13F portfolio of the fund consistently since the second quarter of 2018. Back then, the stake comprised just over a million shares. In the next quarter, it increased by 92% to more than 2 million shares. A further 15% addition was made in the fourth quarter of 2018 to bring the shares owned to 2.3 million. This position then stayed relatively constant, with minor additions or subtractions. Filings for the fourth quarter of 2025 show that the fund owns nearly 2.5 million shares in the company.

READ NEXT15 Stocks That Will Make You Rich in 10 Years.

Lithia Motors, Inc. (NYSE:LAD) has been on the radar of elite hedge funds for a number of reasons. These investors are bullish on Lithia’s aggressive international footprint, which sets it apart from domestic-only peers. Following the 2024 acquisition of Pendragon in the UK, Lithia now generates nearly 19% of its revenue from the British market. Early 2026 data shows that UK service and parts gross margins have surged by 21%. Hedge funds are betting that Lithia’s proprietary management systems will continue to extract higher profits from these European assets than previous owners could. The growth of Driveway Finance Corporation (DFC), Lithia’s in-house lending arm, has also grabbed headlines. The DFC portfolio reached $4.7 billion in 2025. Hedge funds are buying the roadmap to a $17 billion lending portfolio. By financing its own car sales, Lithia captures interest income that would otherwise go to banks.

While we acknowledge the risk and potential of LAD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LAD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

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