Is Rivian Automotive (RIVN) an Attractive Investment?

Baron Funds, an asset management company, released its “Baron Global Advantage Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund gained 1.7% (Institutional Shares) compared to a 6.8% decline for the MSCI ACWI Index and a 5.9% decline for the MSCI ACWI Growth Index. Stock selection contributed to the fund’s outperformance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Baron Funds discussed stocks like Rivian Automotive, Inc. (NASDAQ:RIVN) in the Q3 2022 investor letter. Based in San Jose, California, Rivian Automotive, Inc. (NASDAQ:RIVN) is an electric vehicle company that designs, develops, manufactures, and distributes electric vehicles. On November 2, 2022, Rivian Automotive, Inc. (NASDAQ:RIVN) stock closed at $31.52 per share. One-month return of Rivian Automotive, Inc. (NASDAQ:RIVN) was -12.76% and its shares lost 69.60% of their value over the last 52 weeks. Rivian Automotive, Inc. (NASDAQ:RIVN) has a market capitalization of $27.845 billion.

Baron Funds made the following comment about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q3 2022 investor letter:

“Rivian Automotive, Inc. (NASDAQ:RIVN) designs, manufactures, and sells consumer and commercial electric vehicles (EVs). Shares of Rivian were up 28% in the third quarter driven by second quarter production that beat expectations, a new partnership with Mercedes Benz, and the positive potential impact of the recently announced Inflation Reduction Act on accelerating broader EV adoption. While Rivian continues to be impacted by supply-chain issues that are causing delays in its production ramp, it is addressing the challenges by diversifying its supply chain to alleviate shortages while also consolidating the number of variants in development to reduce cash burn (the company guided that current cash will be enough to support the company’s future platform launch R2 in 2025). The company also recently reported stronger than-expected third quarter production results while reiterating its annual guidance of producing 25,000 units. As semiconductor shortages ease, we believe the company will be able to rapidly ramp its production. While we retain conviction in the shares given the company’s vision, product positioning, relationship with, and strong balance sheet, we have reduced the size of our position.”

Rivian Automotive, Inc. (NASDAQ:RIVN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Rivian Automotive, Inc. (NASDAQ:RIVN) at the end of the second quarter which was 29 in the previous quarter.

We discussed Rivian Automotive, Inc. (NASDAQ:RIVN) in another article and shared the largest IPOs of all time. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.


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Disclosure: None. This article is originally published at Insider Monkey.

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