Rivian is 'The One' To Challenge Tesla, Says Morgan Stanley

Investing.com2021-12-07

Investing.com — Rivian Automotive Inc (NASDAQ:RIVN) rose 4% Monday after bullish analyst notes, with Morgan Stanley telling investors the company is "the one" that can challenge Tesla (NASDAQ:TSLA).

Analyst Adam Jonas initiated coverage of the stock with an overweight rating and $147 price target citing the company's "compelling" product, its management team, and access to capital along with Rivian's relationship with Amazon (NASDAQ:AMZN).

Amazon previously ordered 100,000 vehicles from Rivian. However, the analyst described it as a "stale number" and thinks Amazon will order closer to 300,000 units through 2025 to 2026.

Furthermore, Jonas described Rivian's R1T and R1S models as the most "capable/desirable product" in the electric vehicle market, and believes the van can dominate the EV sector's final mile category.

A multitude of analysts started coverage of Rivian on Monday, with the majority providing bullish ratings with {{0|DBDeutsche Bank} also noting Rivian's relationship with Amazon as a reason for its positive outlook.

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