Morgan Stanley tries to assist clarify the state of affairs.
Curiously, however unsurprisingly, Morgan Stanley calls Rivian the “subsequent Tesla.” As we identified in final night’s article, these clickbait titles towards Tesla have been coming for years and years, with no such luck for OEMs. Nonetheless, regardless of related mainstream protection, Rivian could lastly be the true deal.
Morgan Stanley shares:
The extremely profitable and US-dominated pickup truck market [is] an essential space of investor focus.
For those who haven’t already heard, Reuters reported that GM and Amazon have plans to put money into all-electric pickup truck maker Rivian automotive. Rivian additionally has a three-row all-electric SUV within the works, together with a pure-electric rally automotive. Based on Morgan Stanley analyst Adam Jonas through CNBC:
The extremely profitable and US-dominated pickup truck market “is a key focus for buyers as a result of” end result of battery value discount, structure, obligation cycle, and value level.
We have now targeted appreciable analysis effort on the theme of electrical pickup vehicles in current days [And] entry to expertise & capital targeted on the quickest rising segments of pickup vehicles & SUV.
Amazon has spent the previous couple of years constructing out and increasing its logistics community and lately invested in autonomous driving startup Aurora.
EV powertrains have but to be utilized to essentially the most worthwhile segments the place established US automakers generate revenue and money circulate. We estimate the total sized pickup truck phase accounts for nicely over 100% of world auto revenue for GM and Ford and the vast majority of [Fiat Chrysler]’s international revenue.
Clearly, regardless of his earlier Tesla push, Jonas is aware of full nicely that electrical pickup vehicles are the best way to the way forward for EVs within the U.S.