Tesla rival Rivian's inventory could skyrocket at minimum 160%, says top rated analyst

Rivian’s inventory has an electrical quantity of upside probable.

At the very least that is the fantastic phrase from major Wall Street car analyst at Morgan Stanley Adam Jonas.

The frequently headline-creating Jonas — known for his bullish calls on Rivian rival Tesla — thinks Rivian’s inventory warrants at the very least a 160% surge from amounts he believes are extremely frustrated.

“An IPO that preceded the December sector top, the fact-verify of supply chain bottlenecks (usual in automobile land, probably not typical in tech land), and the gut-examine of possessing companion Amazon work out its correct to safe EDVs from option suppliers (Stellantis, Daimler) has shaken investor self esteem and, we assume, supplies an fantastic opportunity to achieve exposure to a business, solution cycle, and business design that we consider has a greater probability [of] staying a winner in this industry than most other EV competition. When Rivian is at a significantly previously phase in its industrial journey than Tesla, we do not see this company as just a ‘concept stock’ either. The highway to ramping creation will be choppy, but we anticipate mostly thanks to offer somewhat than demand,” stated Jonas in a new analysis observe to consumers.

Jonas has a $147 rate concentrate on on Rivian.

Gov. Brian Kemp smiles as he stands next to a Rivian electric truck during a ceremony to announce that the electric truck maker plans to build a $5 billion battery and assembly plant east of Atlanta projected to employ 7,500 workers, Thursday, Dec. 16, 2021, in Atlanta. (AP Photo/John Bazemore) — Gov. Brian Kemp smiles as he stands next to a Rivian electric powered truck all through a ceremony to announce that the electric powered truck maker programs to develop a $5 billion battery and assembly plant east of Atlanta projected to make use of 7,500 staff, Thursday, Dec. 16, 2021, in Atlanta. (AP Photograph/John Bazemore)

Shares are down some 48% year-to-date to $53.94, swept up into the vicious curiosity rate anxiety driven rout in remarkably valued companies not earning any income. The company went general public at a cost of $78 a share on Nov. 15, 2021. It hit a closing substantial of $172 on Nov. 16.

Not serving to sector sentiment on Rivian is a combined quarter out of Tesla on Wednesday night, a couple of months taken out from its individual earnings report.

Tesla shares plunged 12% to $829 on Thursday’s session as Tesla explained its organization would be weighed down by source chain issues, typically as it relates to semiconductor shortages. The organization also explained it would not unveil any new products this calendar year.

Rivian’s stock plunged 10.7% in Thursday’s buying and selling in sympathy.

The upstart electrical truck maker has not carried out much on its portion to shake off the bears, either.

In late December, Rivian mentioned it would delay its electric powered pickup and sporting activities utility auto featuring more substantial battery packs till 2023. And earlier this thirty day period, Rivian exposed it skipped its 2021 manufacturing concentrate on by earning 1,015 EVs compared to its anticipations for 1,225 pickups and SUVS.

Analysts see Rivian getting rid of a whopping $5.2 billion in 2022 as it ramps up output.

“Although we are impressed with demand for Rivian’s first vehicle versions, checklist of investors, and balance sheet/liquidity place, the stock’s valuation, forthcoming level of competition in the electrical truck/SUV place, and probable high-quality-related worries maintain us on the sidelines. Also, we do not foresee profitability until eventually mid-10 years at the earliest,” CFRA automobile analyst Garrett Nelson said in a take note.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Stick to Sozzi on Twitter @BrianSozzi and on LinkedIn.