Apparently, CNBC finance anchor Jim Cramer is changing his mind over the much-ballyhooed electric vehicle (EV) firm Rivian.
During Cramer’s Squawk on the Street broadcast on Wednesday, September 27th, the anchor remarked that Rivian is a prime example of a brand that’s currently doing well despite the ongoing turmoil in the EV sector.
Despite panning the electric SUV and truck-maker earlier this year, the company made it to Cramer’s list of EV stocks to watch after Ben Kallo, an analyst from financial services firm Baird, referred to Rivian as a notable pick.
For his part, Kallo explained that recent reports released by third-party players of decreasing demand for EVs were what drove down Rivian’s stock value. However, this is bound to change as underlying demand is gaining strength thanks to an increase in production in recent weeks.
Kallo added that deliveries in the third quarter of the year acted as a near-term catalyst; he thus expects pro-Rivian sentiment to continue as the company benefits from a stronger supply chain as well as its use of components manufactured in-house.
However, not everyone shares Cramer’s and Kallo’s enthusiasm about Rivian. Garrett Nelson, an analyst for CFRA Research, made a remark on Saturday, September 23rd, that he doesn’t expect Rivian to have a positive gross margin anytime soon. Nevertheless, he said that the company’s supply agreement with Amazon could help generate a more stable cash flow, though this may take several years.
So, How is Rivian Doing at the Moment?
Since the start of the year, the EV maker has exceeded analysts’ expectations, as well as traders’ forecasts. In the first quarter of this year, Rivian delivered a total of 7,946 EVs; it announced 12,640 deliveries for Q2-2023.
Likewise, Rivian’s chief executive officer RJ Scaringe appears to be indifferent about recent hype about Tesla’s soon-to-be-released Cybertruck, citing how there’s not much overlap when it comes to his customers and Tesla’s. Indeed, Scaringe feels that the introduction of the Cybertruck into the market is a good thing for the EV sector in general.