Written by Cláudio Afonso | info@claudio-afonso.com
Piper Sandler analyst Alexander Potter lowered on Monday, April 18, its price target on Rivian shares to $112 from $130. The analyst maintained an Overweight rating saying that also Tesla had to surpass the same obstacles to escalate the production. Potter noted that Rivian seems singularly aware of what it takes to be the “Next Tesla”.
The analyst noted that “vertical integration is costly, and there are no shortcuts. In its early days, Tesla dealt with delays, quality problems, and staggering cash burn. Rivian must endure this period, just as Tesla did. But we think the payoff will be worth it, because Rivian has a chance to consolidate three large segments of the auto market before Tesla releases competing products.”
Earlier today, Rivian CEO RJ Scaringe warned that the shortage of electric vehicles batteries can affect the auto industry soon being a challenge that “could surpass the current computer-chip shortage”. Auto makers have been facing limited supplies of raw materials like cobalt, lithium and nickel that are fundamental when making a battery. As reported by WSJ, Rivian’s CEO told reporters last week:
The company announced last week the hiring of Anisa Kamadoli Costa as the company’s Chief Sustainability Officer, effective April 18, 2022. Previously, Anisa was Chief Sustainability Officer at Tiffany & Co. and Chairman and President of the Tiffany & Co. Foundation.
Written by Cláudio Afonso | info@claudio-afonso.com