Rivian Automotive Inc. RIVN is among the U.S. electric vehicle startups that have built up some credibility even amid inclement macroeconomic and supply chain scenarios. Loup Funds’ Gene Munster offered his thoughts on the Irvine, California-based company following his first ride in Rivian’s Launch Edition R1S.
What Happened: Munster said he is confident that the company is going to “survive and thrive.” Secondly, he noted that the "R1S SUV feels a lot bigger" than EV leader Tesla Inc.'s TSLA best-selling Model Y vehicle.
Complimenting Rivian and Tesla, Munster said traditional automakers need to reinvent like these two companies and not merely “swap a gas powertrain for electric.”
On the flip side, the Loup Funds’ managing partner said Rivian needs to solve the price problem. “It’s too expensive for a mass market,” adding that the company needs to bring out a $50,000 version.
Why It’s Important: Rivian has had teething problems in the past and it halved its 2022 production forecast when it released its fourth-quarter results in mid-March. The company blamed the predicament on supply chain constraints.
Production ramped up subsequently and the company has stuck to its production forecast since then. The company also reported strong preorder levels for its R1T pickup truck.
Following the second-quarter results released in August, Wedbush analyst Daniel Ives said after “brutal” production woes, Rivian might be finally starting to turn the corner.
Price Action: Rivian closed Monday's session up 0.86% at $33.85, according to Benzinga Pro data.
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