Latest news with #RivianAutomotive
Yahoo
6 hours ago
- Automotive
- Yahoo
Why Is Wall Street So Bullish on Rivian? Here's the $1 Trillion Reason.
Key Points Tesla -- the pioneer of EV makers -- has seen its valuation rise to $1 trillion. Its upstart rival, Rivian Automotive, is preparing to replicate that success. 10 stocks we like better than Rivian Automotive › The average price target among Wall Street analysts for Rivian Automotive (NASDAQ: RIVN) stock is $14.72 per share. That suggests around 16% in additional upside potential over the next 12 months. Some analysts, however, are even more bullish. This week, Evercore analyst Chris McNally reiterated his "buy" recommendation on the stock, with an $18 price target. That's nearly 40% in potential near-term upside! What is making analysts so bullish? The answer is a $1 trillion opportunity. Who will be the next Tesla? When it comes to electric car stocks, Tesla remains king. Its market capitalization sits at roughly $1 trillion. Rivian, meanwhile, is valued at just $16 billion -- less than 1% of Tesla's size. There's a lot bundled into Tesla's market value. It has, for example, a distributed energy business that few (if any) competitors can match. Plus, it has a fledgling robotaxi division that some analysts think will be a $1 trillion opportunity on its own. But the bulk of Tesla's revenue and profits today still come from manufacturing EVs. That makes Tesla's valuation a north star for nearly every other EV maker. With the right growth strategy, Tesla has proven that a $1 trillion valuation is possible. How close is Rivian to achieving a $1 trillion valuation? On paper, the company is years, if not decades, away. But the right pieces are being put into place. Early next year, the company will begin producing three new vehicles -- all priced under $50,000. We also got news this week that Rivian is making progress on its Georgia plant, which will support massive scaling of these new models. When Tesla released its affordable vehicles -- the Model Y and Model 3 -- sales skyrocketed. Today, those two models account for more than 90% of its vehicle revenue. Rivian has the chance to replicate this success over the next three years: the biggest reason Wall Street remains so optimistic. Should you buy stock in Rivian Automotive right now? Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Why Is Wall Street So Bullish on Rivian? Here's the $1 Trillion Reason. was originally published by The Motley Fool
Yahoo
a day ago
- Automotive
- Yahoo
Rivian Automotive, Inc. (RIVN) Isn't A DeLorean, Says Jim Cramer
We recently published . Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the stocks Jim Cramer recently discussed. Rivian Automotive, Inc. (NASDAQ:RIVN) is an electric vehicle company that works with electric cars and trucks. Its shares are flat year-to-date and have lost 21% since late May. The drop in May came after Rivian Automotive, Inc. (NASDAQ:RIVN)'s shares had gained 33% over the past couple of days. The shares jumped after a positive earnings report catalyzed bullish analyst commentary. Cramer commented on the firm's cars and the Volkswagen investment in the context of Uber investing $300 million in Lucid: 'I think that you need a commitment, like the VW commitment to Rivian is extraordinary. And it still hasn't, still Rivian is back to where it was [inaudible]. That's an open ended check from one of the biggest, the biggest car company. A state-of-the-art electric vehicle charging at a station at a suburban mall. Previously, Cramer discussed Rivian Automotive, Inc. (NASDAQ:RIVN)'s cars: 'Okay, listen. Go test drive one. Don't own the stock. I really don't have that much more to say about it because I do think that they went through so much money that it is daunting. How about that? Daunting is a nice word. I'm looking at my research director and he knows when I say daunting, what I really mean is horrible.' While we acknowledge the potential of RIVN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Automotive
- Yahoo
1 Last Thing Lucid Needs to Prove to Wall Street
Key Points The EV maker has poured money into its Advanced Driver-Assistance System (ADAS). The company has leading technology, but no joint ventures yet with others. A joint venture similar to Rivian and Volkswagen's could be a huge boost to business. 10 stocks we like better than Lucid Group › Right now, Wall Street is lukewarm on the electric vehicle (EV) industry, as sales and market share have yet to gain traction at the speed once anticipated. But at least one EV maker -- Lucid Group (NASDAQ: LCID) -- has proven capable of turning around operations. After years filled with disruptions, delays, and disappointments, the automaker has gained traction and turned in seven consecutive quarters of rising deliveries. It's proven it can design, develop, and launch incredible high-quality vehicles, and that it can attract a major investor: Saudi Arabia's Public Investment Fund (PIF). But there's one last thing Lucid needs to prove to Wall Street -- that it can package its technology and generate revenue from it, much like competitor Rivian Automotive has done with Volkswagen. Look, hands-free! Lucid's vehicles are using over-the-air (OTA) software updates to become even more capable and more advanced. That's great news for the automaker, which claims to have the best EV technology. Starting later this month, July 30 to be exact, Lucid Air owners will get access to new features through an OTA update that includes Hands-Free Drive Assist and Hands-Free Lane Change Assist. It's the latest sign that Lucid is continuing to pour capital into Advanced Driver Assistance Systems (ADAS). Kai Stepper, Lucid's vice president of ADAS, noted that the update "offers a glimpse into the future that Lucid is building." While these new systems might seem like buzzwords to investors, they certainly aren't to be brushed aside and can generate revenue in multiple ways. Consider that Lucid's DreamDrive Pro is an optional ADAS system that includes visible-light cameras, ultrasonic sensors, LiDAR, and surround view cameras, among others, for a small price of $950 plus tax. But what should really interest investors is whether Lucid can sell its software and technology stack to a major manufacturer for mass production in their vehicle lineup. That's exactly what Rivian was able to do with its partnership with Volkswagen. Show me the money! Rivian formed a joint venture with Volkswagen Group in a deal worth up to $5.8 billion, and potentially more, which combines the strength of Rivian's cutting-edge software stack and electronics architectures and the scale of Volkswagen's production and vehicle platforms. But the biggest takeaway is that there are very real global automakers that have failed to develop solid technology stacks, and Volkswagen finally decided to ask for help. This is a big deal -- not only for Rivian's cash position, but because it also gets Rivian's technology and products in front of incredible numbers of people in Volkswagen vehicles that span all relevant vehicle segments. Lucid has proven that it's capable of developing an incredible vehicle. Management noted recently that many of its new customers are coming directly from Tesla, as that company deals with backlash and people are looking for a high-quality and advanced replacement option. Lucid has proven capable of launching vehicles and accelerating production, which the electric Gravity SUV is currently going through the process of as of this writing. But what Lucid has yet to do is prove to Wall Street that it can package its technology stack and sell it to customers such as Volkswagen. It's one of the few hurdles which remain for a company that appears poised to have a strong finish to 2025 despite a sluggish EV market and uncertainty regarding tariffs. Investing in Lucid comes with immense risk, but if the company can create a joint venture similar to Rivian's, the automaker's future will be very bright. Should you invest $1,000 in Lucid Group right now? Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy. 1 Last Thing Lucid Needs to Prove to Wall Street was originally published by The Motley Fool Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Yahoo
3 days ago
- Automotive
- Yahoo
Why Investors Need to Take Advantage of These 2 Auto-Tires-Trucks Stocks Now
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings. Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises. 2 Stocks to Add to Your Watchlist The Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. Rivian Automotive (RIVN) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at -$0.62 a share 18 days away from its upcoming earnings release on August 5, 2025. By taking the percentage difference between the -$0.62 Most Accurate Estimate and the -$0.66 Zacks Consensus Estimate, Rivian Automotive has an Earnings ESP of +5.82%. RIVN is one of just a large database of Auto-Tires-Trucks stocks with positive ESPs. Another solid-looking stock is Allison Transmission (ALSN). Slated to report earnings on July 24, 2025, Allison Transmission holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $2.23 a share six days from its next quarterly update. For Allison Transmission, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.22 is +0.27%. RIVN and ALSN's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon. Find Stocks to Buy or Sell Before They're Reported Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
4 days ago
- Automotive
- Yahoo
Prediction: Rivian's New R2 Truck Will Be a "Tesla-Like" Turning Point for the Company
Key Points Rivian is an EV maker trying to break into the big leagues of the auto industry. The still-young company started out by focusing its efforts on high-end trucks. Its next big move will be an introduction of the R2, a truck for the mass market. 10 stocks we like better than Rivian Automotive › Tesla (NASDAQ: TSLA) made a decision when it built its business to start with high-end vehicles. And then it charted a path toward more moderately priced vehicles. That business move worked and now the company is sustainably profitable despite years of red ink at the get-go. Rivian Automotive (NASDAQ: RIVN) is currently in the red ink stage of its development, but it has Tesla-like ambitions and a key turning point could be fast approaching. What did Tesla do? The first Tesla was a fancy, high-end sports car. That vehicle proved to the world that electric vehicles (EVs) were a real product that customers would want to buy. For a long time the large automakers shunned EVs as not being viable. After Tesla proved the concept, it brought out sedans that would appeal to more than just car enthusiasts. Those higher-end EVs sold well and, suddenly, every major automaker realized that they had to make EVs. If they didn't jump on the bandwagon they could get boxed out of a new segment auto market. As that was going on, Tesla pivoted again, bringing out lower-cost models of its EVs that had mass-market appeal. That helped to boost sales volumes in the capital-intensive business and improve profitability. Switch Auto Insurance and Save Today! Great Rates and Award-Winning Service The Insurance Savings You Expect Affordable Auto Insurance, Customized for You Essentially, Tesla started with rich customers. But there are only so many rich customers. And, thus, it moved down market to build a sustainably profitable business. That's a simplification of a very long process, of course, but it is the general theme that's important. Rivian is following the Tesla playbook. Start high-end, then go mass-market Rivian currently makes two kinds of trucks, a delivery vehicle and a high-end consumer pickup truck. The delivery vehicle was an important proof of concept that helped the company develop its technology. It also allowed Rivian to generate some early revenue thanks to a relationship with Amazon. Consider the delivery truck similar to Tesla's sports car. As it was proving that its technology was reliable, Rivian was also building fancy high-end pickups for the consumer market. The trucks have been well-received, and Rivian has been able to ramp up production and fine tune its production processes along the way. In fact, it was able to turn a modest gross profit in the fourth quarter of 2024 and in the first quarter of 2025. This means that Rivian stopped losing money on every truck it sold, though costs further down the earnings statement, like research and development (R&D) and selling, general, and administrative expenses (SG&A), still leave it bleeding red ink. This is where scale becomes important. Rivian needs to spread its costs over more vehicle sales, which is basically what Tesla did. The next big vehicle release for Rivian is the R2, which is a lower-cost truck meant for the mass market. The goal is to start production in the first half of 2026. With around $7 billion of cash on the balance sheet and a key partnership with auto giant Volkswagen, it seems highly probable that Rivian gets that factory up and running. The real test of Rivian's business will come when it starts selling the R2. If sales are robust the company will have successfully taken Tesla's playbook and achieved similar wins. And the added volume from R2 sales should help move Rivian toward sustainable profitability, just like Tesla achieved. Rivian is high-risk, but executing well Rivian remains a high-risk investment that's only appropriate for more aggressive investors. If the company doesn't execute well it could still fall short of its goals in what is a very complex and competitive auto sector. However, the launch of the R2 could be the big turning point for Rivian that turns it into the "next Tesla." OK, no company is ever going to be Tesla, given that the company effectively created the EV space. But Rivian's R2 could make it the next best thing. Should you buy stock in Rivian Automotive right now? Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* Now, it's worth noting Stock Advisor's total average return is 1,072% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Tesla. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy. Prediction: Rivian's New R2 Truck Will Be a "Tesla-Like" Turning Point for the Company was originally published by The Motley Fool
