Why EV Stocks Lucid and Rivian Jumped Today

What happened

Shares of $Lucid Group(NASDAQ:LCID)$ and Rivian Automotive climbed 17% and 4%, respectively, on Friday after a leading analyst highlighted the staggering growth potential of the electric vehicle (EV) market.

So what

Wedbush analyst Daniel Ives reiterated his buy rating on Tesla(NASDAQ:TSLA). He now sees the EV industry leader'sstockprice surging more than 20% to $1,400, up from a prior target of $1,100.

Ives expects booming EV sales in China to fuel Tesla's growth and that of other EV makers. He also sees President Biden's efforts to accelerate the adoption of EVs in the U.S. as part of his climate change agenda as another powerful growth driver for the industry.

As part of those efforts, the Biden Administration seeks to build a nationwide network of EV charging stations. Ives expects this charging system to spur the growth of EV sales in the U.S.

Moreover, he estimates that EVs will account for 10% of global auto sales by 2025, and as much as 30% by 2030. In turn, he pegs the total addressable market for the EV "revolution" at a stunning $5trillionover the next decade.

Now what

Ives thinks Tesla could claim up to half of this enormous opportunity. That leaves at least $2.5 trillion for Lucid, Rivian, and other automakers.

Of course, these are all just estimates, but they help to highlight the sheer magnitude of the shift to electric-powered transportation. Ives' comments also served as a reminder to investors about just how large Lucid and Rivian can become if they can achieve success in this massive global market.