4. Rivian Automotive Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 47
Rivian Automotive, Inc. (NASDAQ:RIVN) designs, develops, manufactures, and sells electric vehicles and accessories. The company offers five-passenger pickup trucks and sports utility vehicles. Analysts are showing keenness for the stock and see a significant upside to it, driven by multiple growth catalysts. This May, Morgan Stanley analyst Adam Jonas highlighted that Rivian Automotive, Inc. (NASDAQ:RIVN) is currently trading just above his $20 “bear case”, but exhibits the potential to soar 300%. Jonas sees two primary growth catalysts for the stock, one being the company’s demand for on-shore battery manufacturing in the U.S. to surge, and the other being its strategic partnership with Amazon.com, Inc. (NASDAQ:AMZN) to help electrify its logistics services. The analyst reiterated an Overweight rating on the shares and gave the stock an $85 price target.
Rivian Automotive, Inc. (NASDAQ:RIVN) is advancing its efforts in electrification and is also being waved in while at it. On May 3, Rivian Automotive, Inc. (NASDAQ:RIVN) announced that it will receive $1.5 billion in incentives to build an EV manufacturing plant in Georgia, The project will generate up to 7,500 jobs for the residents of Georgia, and once the factory is operational, it is expected to deliver up to 400,000 vehicles per year by 2024. Rivian Automotive, Inc. (NASDAQ:RIVN) has several upcoming growth catalysts, which justifies its inclusion in the best automotive stocks to invest in now.
Rivian Automotive, Inc. (NASDAQ:RIVN) is not only gaining popularity among expert financial analysts but is also being bullishly viewed by elite hedge fund investors. Insider Monkey identified that 47 hedge funds initiated positions in the emerging EV automaker in the fourth quarter of 2021. The total value of their stakes was estimated at $9.08 billion.
ClearBridge Investments, an investment management firm, published its “Select Strategy” fourth quarter 2021 investor letter in which it mentioned Rivian Automotive Inc. (NASDAQ:RIVN). Here is what experts at ClearBridge think about the stock:
“We are willing to take some risk on IPOs but need to be convinced on the opportunity and manage these exposures carefully, as was the case with electric truck maker Rivian. While the company went public without revenues, it offered us a chance to look out further into the future for a business with a potentially attractive long-term upside. We believe Rivian has a great product in the right area of the market: pickup trucks and SUVs. Its commercial relationship with Amazon will help fund growth as it begins to execute in an increasingly competitive area of the electric vehicle market.”