During a challenging period for general electric car companies, Wedbush Securities defended its optimistic outlook on Rivian Automotive (NASDAQ:RIVN). With the R1T and R1S now on the road and competing with GM’s brand-new Hummer and Ford’s F-150 lightning, analyst Dan Ives and team say Rivian (NASDAQ:RIVN) is ahead of certain startups. Rivian is anticipated to be one of the EV players that upend the auto industry during the next ten years. Rivian stock on Friday was fairly flat.
The important collaborations Rivian Automotive (NASDAQ:RIVN) has established are a crucial component of the bull thesis for the company. Through Amazon and Mercedes, these relationships are notably anticipated to increase demand on the EDV side of the industry.
“Rivian’s EV Delivery Van (dubbed the RCV) is supplying Amazon with an order of 100,000 unit deliveries by 2025, and Amazon owns 20% of the business. The vehicle uses a skateboard base and shares the same drivetrain, batteries, and electronic components as the R1. It also has two launch options. Focusing on the Amazon collaboration, which has an estimated value of $7 billion for vehicle orders and LTR services, we think there is potential for much more value down the road in the form of additional vehicles.”
Rivian stock outlook
As production increases, Rivian’s RCV is anticipated to gain traction and extend farther into the US with partnerships from other businesses. With a price objective of $45, or around three times the projected revenue for 2025, Wedbush has an Outperform rating on RIVN. In premarket trading on Friday, shares of RIVN decreased 0.58% to $34.30 from a 52-week trading range of $19.25 to $179.47.
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Author Jowi Kwasu 
