Rivian gains as Stifel initiates coverage of EVs

investing.com:

Shares of electric vehicle maker, Rivian (NASDAQ:RIVN) jumped nearly 4% in pre-market trading Thursday morning after Stifel initiated coverage of the company with a Buy rating and a 12-month price target of $23.00.

In a note, Stifel highlighted Rivian's recent agreement with Amazon for 100,000 Electric Delivery Vehicles (EDVs). They also pointed out that Rivian's new manufacturing facility, anticipated to launch the R2 line in 2026, is projected to have an annual production capacity of 400,000 units.

Stifel expressed optimism about the potential of Rivian's upcoming R2 platform, designed to cater to the largest electric vehicle segment in the U.S., a domain currently dominated by Tesla.

Stifel also initiated coverage on Lucid Group (NASDAQ:LCID) with a Hold rating and a $5.00 price target on the automotive stock.

Analysts have characterized the Lucid Air electric model as “an outstanding vehicle,” praising its quality and features. Additionally, they emphasized the significance of the company's recent licensing agreement with Aston Martin.

Furthermore, they highlighted the advantageous position of the EV maker due to its ownership by the “deep-pocketed” Saudi PIF.

Sales of electric vehicles have encountered significant challenges recently, influenced by both broader economic factors such as high interest rates, inflation concerns, and worries about a potential recession, as well as specific obstacles within the EV industry.

These EV-specific challenges involve concerns like range anxiety, vehicle expenses, limited model availability, and the infrastructure for charging.

However, analysts anticipate that these hurdles will gradually shrink over the coming years. As these issues are addressed and resolved, they expect the