Canaccord Genuity reiterated a Buy rating and $40.00 price target on Rivian Automotive (NASDAQ:RIVN) following recent statements from CEO, RJ Scaringe and CFO Claire McDonough. They described a “material improvement” in the broader supply chain environment and said that the company’s R1 demand remains healthy and described their backlog as extending “into 2024”.
Canaccord analysts wrote in a note, "Over the last several days, Rivian CEO, RJ Scaringe and CFO Claire McDonough have spoken publicly. Similar to our recent note, we found the overall tone from management one of stabilization and optimism as supply chain and operational bottlenecks ease and the R2 readies for its unveiling early next year. While Rivian's operational issues since its 2021 IPO have proven frustrating, its vehicles remain highly desirable and well reviewed. We see the operational clouds breaking as production ramps and financials improve. We would also encourage management to continue to fortify the balance sheet to de-risk operations and instill confidence in stakeholders and customers."
Management plans to unveil their R2 "to the world early 2024." The vehicle will target the broader midsize SUV crossover market with a price range of $40k-$60k, above the R1 line which should start at ~$73k.
The CEO also announced that they have agreed to adopt Tesla's (NASDAQ:TSLA) charging standard, joining fellow automakers Ford (NYSE:F) and General Motors (NYSE:GM). Tesla shares are up more than 40% since late May when the U.S. electric vehicle giant announced its deal with Ford.
Shares of RIVN are up 4.13% in mid-day trading on Tuesday.