Analyst Discusses Why GM & Amazon Are Interested In Rivian
Morgan Stanley tries to help explain the situation.
Interestingly, but unsurprisingly, Morgan Stanley calls Rivian the “next Tesla.” As we pointed out in last evening’s article, these clickbait titles against Tesla have been coming for years and years, with no such luck for OEMs. However, despite similar mainstream coverage, Rivian may finally be the real deal.
Morgan Stanley shares:
The highly lucrative and US-dominated pickup truck market [is] an important area of investor focus.
If you haven’t already heard, Reuters reported that GM and Amazon have plans to invest in all-electric pickup truck maker Rivian automotive. Rivian also has a three-row all-electric SUV in the works, along with a pure-electric rally car. According to Morgan Stanley analyst Adam Jonas via CNBC:
The highly lucrative and US-dominated pickup truck market “is a key focus for investors due to the” culmination of battery cost reduction, architecture, duty cycle, and price point.
We have focused considerable research effort on the theme of electric pickup trucks in recent days [And] access to talent & capital focused on the fastest growing segments of pickup trucks & SUV.
Amazon has spent the last few years building out and expanding its logistics network and recently invested in autonomous driving startup Aurora.
EV powertrains have yet to be applied to the most profitable segments where established US automakers generate profit and cash flow. We estimate the full sized pickup truck segment accounts for well over 100% of global auto profit for GM and Ford and the majority of [Fiat Chrysler]’s global profit.
Clearly, despite his previous Tesla push, Jonas knows full well that electric pickup trucks are the way to the future of EVs in the U.S.