Rivian stock is going through turbulent times as of late. Following the firm's November IPO at $78 a share, prices surged to $172 before suddenly dipping back down to around $100. Then came the general stock sell-off, and now RIVN is at just $57.12 as of writing. That makes the company worth around $50 billion - roughly half the value of Ford.
Rivian is, as you probably know, delivering a small number of vehicles at the moment and has overcome the biggest hurdle of any automotive startup - reaching production. The firm produced 1,015 vehicles in 2021, of which 915 were delivered. Rivian also has backing from Ford and Amazon, and reviews of the R1T pickup have generally been very positive. For our own first drive review of the R1T, click here.
Morgan Stanley's in-house EV expert, Adam Jonas, recently discussed Rivian's current position in a research note to his clients. He believes the stock is overly depressed with a big surge likely around the corner. Jonas also reckons Rivian is in a much better position than many of its startup competitors. He had the following to say in his research note (via Teslarati):
“An IPO that preceded the December market top, the reality-check of supply chain bottlenecks (normal in auto land, perhaps not normal in tech land), and the gut-check of having partner Amazon exercise its right to secure EDVs from alternative vendors (Stellantis, Daimler) has shaken investor confidence and, we think, provides an excellent opportunity to gain exposure to a company, product cycle, and business model that we believe has a greater chance [of] being a winner in this industry than most other EV competitors.”
Predicting the future of a stock is no easy task and while Jonas has a strong track record, we do recommend seeking additional financial advice before deciding on whether or not to invest your money into any company.
“While Rivian is at a far earlier stage in its industrial journey than Tesla, we do not see this company as just a ‘concept stock’ either. The road to ramping production will be choppy, but we expect largely due to supply rather than demand.”
Jonas, a managing director at Morgan Stanley, has a big interest in the car industry and has more recently shifted his focus towards EVs. He is often in the spotlight thanks to his bullish calls on Tesla, believing they are still miles ahead of anyone else in the EV industry. Jonas currently has a "Buy" rating on Rivian with a $147 price target.