Rivian (NASDAQ:RIVN) stock got a boost as Evercore supported the electric vehicle (EV) maker with a $35 price target.
Rivian rose 5% on the news but dipped about 1.5% overnight. It opened this morning at nearly $24 per share, a market capitalization of $23 billion.
Why, Rivian, Why?
Rivian has a factory in Normal, Illinois, but plans to open a larger plant east of Atlanta in 2026.
Analyst Chris McNally said it could become the “next Tesla (NASDAQ:TSLA)” and upgraded the stock with an “outperform” rating.
Rivian has just opened an online “inventory shop” for its R1T truck, offering delivery in as little as one week. The company, which is based in Irvine, California, also had the highest growth rate of any make registered through California car dealers during the first six months of the year. A Florida company has lifted the body of the R1T, added bigger tires and turned it into something called the “Apocalypse Nirvana” at $150,000.
But critics argue Rivian is losing an estimated $33,000 on every $80,000 truck it makes and has blown through half its cash trying to scale production. Rivian got some of that cash from a 2019 deal with Amazon (NASDAQ:AMZN) for 100,000 delivery vans. So far, only about 5,000 have hit the streets.
That may be why one of Rivian’s 20 analysts on Tipranks calls the stock a sell, with a $20 price target. There are 12 telling clients to buy it.
Rivian and Lucid Group (NASDAQ:LCID) are competing to be the survivors in a race to build a new American company from the electric vehicle transition. While Rivian has Amazon and the Georgia state government in its corner, Lucid has the backing of Saudi Arabia.
RIVN Stock: What Happens Next?
Rivian must also compete with the Ford (NYSE:F) Lightning, priced at around $50,000.
Making and selling an electric car may be less important in 2024 than turning a profit on it.
As of this writing, Dana Blankenhorn held a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
