HomeInvesting NewsRivian Automotive Stock Rated Buy by Wedbush on “Wise Strategic” European Approach

Rivian Automotive Stock Rated Buy by Wedbush on “Wise Strategic” European Approach

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Rivian Automotive (NASDAQ:RIVN) 

Rivian Automotive’s (NASDAQ:RIVN) agreement with Mercedes-Benz Vans was hailed by Wedbush Securities as a significant advancement in its European strategy.

In response to the significant news, analyst Dan Ives stated, “We view this as a prudent strategic move by Rivian to penetrate Europe while boosting production of the EDV platform to satisfy its long-term growth and profitability ambitions.”

With the addition of the production arm in Europe, Rivian Automotive (RIVN) is now considered to be well-positioned to manage near-term supply chain challenges while also growing its brand among international consumers. The market for electric delivery vans in Europe is also largely untapped, which adds to the strategic decision.

The financial support of AMZN and its prestigious 100,000 car commercial delivery contract is reported to give RIVN a competitive edge over its rivals. International rivals, in contrast, are primarily seen as pre-revenue businesses seeking to increase production.

With a price target of $45 and an outperformed rating on RIVN, Wedbush believes that 2023 will represent a turning point for the EV pickup industry as a whole.

The Deal Between Rivian and Mercedes-Benz for Electric Vans

A Memorandum of Understanding between Mercedes-Benz and Rivian for a strategic alliance and cooperative manufacture of electric vans was signed with the aim of setting the bar for environmentally friendly, all-electric mobility. In order to invest in and run a factory in Europe, the corporations plan to create a new joint venture manufacturing company.

The anticipated joint venture will manufacture huge electric vans for Rivian and Mercedes-Benz. To scale up the manufacture of electric vans quickly, the firms will explore operational synergies, leverage common investments, and share costs. Additional opportunities for boosting the joint venture’s synergy will also be investigated.

Featured Image-  Megapixl @Rafaelhenriquepress

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