Rivian Automotive Inc (RIVN) CEO Confirms Coming Battery Shortage, EV Unit Shipments in Jeopardy - Morgan Stanley

April 20, 2022 7:54 AM EDT
Get Alerts RIVN Hot Sheet
Price: $38.90 -0.13%

Rating Summary:
    12 Buy, 6 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 8 | Down: 40 | New: 22
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Morgan Stanley analyst Adam Jonas reiterated an Overweight rating and $85.00 price target on Rivian Automotive Inc (NASDAQ: RIVN) after CEO RJ Scaringe was quoted in an electrek article yesterday saying: “Semiconductors are a small appetizer to what we are about to feel on battery cells over the next two decades.” Despite this, the company reiterated its revised 25k unit production forecast this year.

The analyst stated "we believe most near term EV volume assumptions are predicated on the supply of critical materials that unlikely to be in sufficient supply." "Near-term expectations for EV penetration may have to be lowered significantly due to a lack of critical electric metals. Short term, we’d encourage investors to categorically lower EV penetration forecasts for many OEMs, through mid-decade, that may have not secured the necessary physical materials/metals to make good on their EV forecasts. On the flip-side, investors may need to revise UP their internal combustion engine penetration, at least temporarily, which could prove quite profitable given R&D dollars are unlikely to be directed to ICE tech in the future. This would leave OEMs milking the ICE cash cow over a fatter deadoption curve than currently appreciated."

For an analyst ratings summary and ratings history on Rivian Automotive Inc click here. For more ratings news on Rivian Automotive Inc click here.

Shares of Rivian Automotive Inc closed at $39.15 yesterday.

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