By Davit Kirakosyan
Mizuho Securities analyst Vijay Rakesh released an Industry Commentary on electric vehicles (EVs), noting a better outlook in H2, with battery electric vehicle (BEV) remaining a bright spot amidst macro headwinds, led by China rebounding up approximately 80% month-over-month in May.
Global light vehicle production (LVP) estimates for 2022 remain at approximately 4% year-over-year (IHS May 2022), though the brokerage believes BEV could grow another 60-80% year-over-year in 2022 to over 8 million units.
The brokerage believes Shanghai re-opening and government stimulus sets up for a strong H2/22 recovery and could benefit NIO Inc (NYSE:NIO) and Tesla, Inc. (NASDAQ:TSLA), with Berlin also ramping to approximately 1000/week of model-Y's.
The brokerage also expects a better H2/22 from Rivian Automotive Inc (NASDAQ:RIVN) as production ramps. The brokerage believes chassis, powertrain, and battery production lines are ramping well but still seeing some commodity chip constraints.
While the brokerage kept its estimates/price targets unchanged, it noted that improving H2/22 production/deliveries should position the EV group better.