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Investing.com - Canaccord Genuity has reiterated its Buy rating and $23.00 price target on Rivian Automotive Inc (NASDAQ:RIVN) following the electric vehicle maker’s second-quarter delivery announcement and confirmation of a scheduled investment from Volkswagen (ETR:VOWG_p). For context, industry leader Tesla (NASDAQ:TSLA) currently commands a market capitalization of over $1 trillion and trades at a P/E ratio of 165, reflecting the premium valuations in the EV sector.
The company received a $1 billion equity investment from Volkswagen Group at an effective price of $19.42 per share, representing a 33% premium to the $14.56 30-trading day volume-weighted average stock price. This investment is part of the previously announced $5.8 billion agreement associated with the Rivian-Volkswagen technology joint venture. According to InvestingPro data, Tesla generated nearly $96 billion in revenue over the last twelve months, setting a high benchmark for emerging EV manufacturers. Discover detailed competitive analysis and 18+ additional ProTips for Tesla and other EV makers with InvestingPro.
Rivian’s second-quarter 2025 delivery announcement met expectations, with the company reaffirming its 2025 delivery guidance. CEO RJ Scaringe recently shared footage of the upcoming R2 model undergoing testing, with management indicating the vehicle remains on track for a first-half 2026 release with an expected starting price of approximately $45,000.
Canaccord Genuity views the Volkswagen joint venture as alleviating "a significant chunk of the capital concern" for Rivian, helping bridge the company to scale. The research firm believes Rivian has "a unique, timely opportunity" to establish itself as "the next American auto icon" as other automakers retreat from EV commitments.
The firm maintains that despite current EV market challenges, the auto industry’s transition to electrification remains "highly likely," creating opportunities for companies like Rivian to challenge incumbent manufacturers.
In other recent news, Tesla reported its second-quarter 2025 delivery results, exceeding market expectations with 384,000 vehicles delivered. Despite a 13% year-over-year decline, the delivery figures surpassed the anticipated 360,000 units, driven by strong sales of the Model 3 and Model Y. Deutsche Bank (ETR:DBKGn) maintained its Buy rating, citing potential upside in Tesla’s automotive gross margin due to the higher-than-expected delivery volume. Oppenheimer also reiterated a Perform rating, noting the robust performance of the Model 3 and Model Y, which helped offset weaker sales of other models. Meanwhile, Tesla’s energy storage business deployed 9.6 gigawatt-hours, falling short of some analyst projections. In China, Tesla’s sales saw a slight increase in June, ending an eight-month streak of declining sales in the region. Additionally, Elon Musk’s AI startup, xAI Corp., added three banks to its $5 billion debt deal, aiming to maintain valuable financial relationships. Canaccord Genuity, while maintaining a Buy rating, highlighted potential catalysts for Tesla, including new models and a focus on more affordable vehicles.
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