After an outstanding increase of 24% in one day, analysts indicate a further growth of 35%. With solid fundamentals and a favorable chart signal, the rally could continue.
This stock can rise by another 35% according to analysts, after the monstrous rise of 24% recorded in a single day. While enthusiasm for electric vehicles is slowing due to factors such as high interest rates, raw material costs, regulatory uncertainties, and competition from Chinese autos, the growth outlook remains strong.
According to the International Energy Agency, global sales of electric vehicles increased by 3.5 million, reaching nearly 14 million in 2023. This represents a 35% increase compared to 2022 and a six-fold increase compared to five years ago. These data highlight a positive trend that could further support the growth of this stock, considered by many to be a worthy rival of Tesla.
Investing in this stock now could be a strategic move for investors looking for opportunities in the electric vehicle sector. With a rapidly evolving industry and a growing demand for sustainable mobility solutions, this stock presents itself as one of the most promising bets on the market.
Rivian can rise by another 40% according to analysts
- Rivian daily graph
- Source: Tradingview
Despite a net loss of over 1.4 billion dollars in the first quarter of this year, Volkswagen has decided to bet on the American startup, focusing on its advanced technology to improve production efficiency and reduce costs, making electric vehicles more accessible and competitive.
The joint venture sees Rivian share its innovative electric vehicle technology, including next-generation software-defined (SdV) software, thereby participating in the development of cutting-edge battery-powered vehicles. This strategic agreement will not only provide Rivian with a solid financial foundation ($5 billion by 2026) but also the opportunity to develop technologies that could redefine the future of electric vehicles on a global scale.
Rivian, which went public in November 2021, saw its market capitalization rise to $153 billion in the days following the IPO, temporarily overtaking giants such as Ford and GM. However, the industry slowdown has led to a significant revaluation of the company, whose market value is now less than $12 billion. With Amazon as the main shareholder with a 16% stake, analysts are divided on the opinions: 15 buy, 8 hold and 2 sell, with an average target price of $14.88, in line with the current value of the stock.
Analysts at Stifel and Wedbush are particularly optimistic, with target prices of $18 and $20 per share respectively, which implies an upside of 35%. According to them, the partnership with Volkswagen represents a turning point for Rivian, validating its technology and changing the company’s capital structure, paving the way for a future of growth and innovation.
The stock graph is characterized by a rapid decline in prices, fueled by a bearish gap in February, until reaching the April lows in the 8.30 area, and by a subsequent change in trend, culminating in a bullish gap on 26 June. From a graphic point of view, therefore, Rivian has all it takes to extend the momentum toward the indicated objectives.
Tesla and other startups in the sector
As Rivian works to solidify its position in the electric vehicle market, other U.S. startups are facing significant challenges. Fisker, for example, recently filed for bankruptcy after struggling with fundraising, slow sales and supply chain difficulties. Likewise, many startups are reducing production costs and trying to develop cheaper models to counter weak demand and high financing costs. This competitive landscape highlights the unique challenges and opportunities Rivian is seeking to address on its path to financial sustainability and success in the electric vehicle market.
Even Tesla, the automotive industry led by Elon Musk, is currently going through one of its most critical phases. After a 48% plunge in the stock market between January and April 2024, the company saw some of its largest institutional investors reduce their positions, signaling a change in perception towards the stock. Since November 2021, when the stock exceeded $350, Tesla has suffered a significant loss, burning almost $600 billion in capitalization. Although it maintains the highest market capitalization among automakers, with around $550 billion, its projected earnings multiple exceeds 60 times, reflecting a valuation typical of tech companies rather than industrial ones, thanks to its leadership in the automotive sector. electric car and artificial intelligence.
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Original article published on Money.it Italy 2024-07-01 07:45:00. Original title: Questo titolo può salire ancora del 35% secondo gli analisti
