Rivian Automotive vs. Lucid Group: Morgan Stanley says there is a clear winner

Morgan Stanley said a study of its consumers in regard to which stock they would like to very own among Rivian Automotive (NASDAQ:RIVN) and Lucid Team (NASDAQ:LCID) indicated a distinct winner.

87{f8f9f7e6fa72495c30ab254213729fbbad6cff923a9c63d260c5c902274d4d9d} of the respondents explained they like Rivian (RIVN) as an investment about Lucid (LCID).

Analyst Adam Jonas: “An financial commitment in both enterprise demands a will need for long-expression imagining and planning for important potential volatility around the ramp to significant volume production. Specialized things apart (LCID’s 30{f8f9f7e6fa72495c30ab254213729fbbad6cff923a9c63d260c5c902274d4d9d} free float, 17{f8f9f7e6fa72495c30ab254213729fbbad6cff923a9c63d260c5c902274d4d9d} brief base, significant retail element, and so on.), the market place appears to be producing the circumstance that LCID can scale its award-successful Air into new segments and much decrease cost points to achieve a lot of hundreds of 1000’s or possibly hundreds of thousands of units of EVs at some position in the foreseeable future.”

Morgan Stanley mentioned it agreed with the consensus consumer choose of RIVN in excess of LCID. Jonas and staff observed that they believe LCID has some substances to be a related and long-standing competitor in the electrical car race, but have considerably far more conservative expectations that travel the in the vicinity of-time period price goal of $16.

In the meantime, Morgan Stanley has an Over weight ranking on Rivian and price tag focus on of $147, which reps the possible for shares to double.

Rivian Automotive (RIVN) is down 38{f8f9f7e6fa72495c30ab254213729fbbad6cff923a9c63d260c5c902274d4d9d} on a year-to-date foundation and Lucid (LCID) is off 27{f8f9f7e6fa72495c30ab254213729fbbad6cff923a9c63d260c5c902274d4d9d}.

Up coming stage: Evaluate scores, performance marks and valuation grades on Rivian and Lucid aspect by facet.