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Investor's Corner

How Rivian’s deal with Mercedes bolsters the EV maker’s long-term outlook

(Credit: Rivian)

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After Rivian Automotive (NASDAQ: RIVN) struck a deal with Mercedes-Benz last week for a strategic partnership and joint production effort of electric delivery vans, analysts are explaining how the move could help bolster the EV maker’s long-term outlook.

Last week, Rivian and Mercedes-Benz announced they would build all-electric delivery vans for the European market, where the EV company has yet to deliver a vehicle. In the United States, Rivian is currently offering customers the R1T pickup, but its EDV, or Electric Delivery Van, is one of the main focal points of the company’s early production.

In 2019, Rivian found itself a worthy investor and supporter in Amazon, which ordered 100,000 EDV units from the company. Deliveries began this year after extensive pilot programs yielded adequate data for a controlled launch in several cities. The EDV is an early signal of success for Rivian as it struggles to ramp production of the R1T and R1S due to parts shortages. Supply chain issues have been cited by Rivian in the past for delayed production and delivery dates.

However, the EDV’s arrival in Europe and Rivian’s partnership with Mercedes-Benz is bolstering the company’s long-term future, which has been not in doubt but definitely questioned by those with extensive knowledge of the industry. While armchair commentators have speculated that Rivian and other EV startups would not survive the early days of production, Tesla CEO Elon Musk advised the automaker to cut costs and ramp production at its first factory before expanding with new manufacturing facilities within the United States.

The EDV partnership with Mercedes gives Rivian a new bit life, according to numerous analysts. The electric van sector, while predominately controlled by Ford, is still widely up for grabs due to relatively low volumes. While the United States may have a higher concentration of these vehicles, Europe is still lacking sustainable commercial logistics solutions, and Rivian’s EDV product is suitable for the market, Dan Ives of Wedbush explained (via MarketWatch):

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“We view this as a smart strategic move by Rivian to penetrate Europe while ramping production of the EDV platform to meet its long-term growth and profitability targets. We believe Rivian is primed to capture the massive influx of current and future EV demand, capitalizing on a unique global TAM from a core engineering and design perspective along with the Amazon commercial relationship has the potential to be a major EV stalwart over the next decade. Production is improving to at least hit the 25k deliveries this year and we have confidence that customer reservations continue to increase into FY23 with the stage set for a seminal year ahead.”

Ives has a $45 price target on Rivian and an ‘Outperform’ rating on the stock.

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Credit: Rivian

Additionally, Ben Kallo of Baird Securities has also said the Rivian deal will help the company solve scalability with the production portion of the deal occurring at an existing Mercedes-Benz facility in Europe. Kallo also said that Rivian has a chance to “mount a challenge to Tesla’s current dominance” in the coming years as it continues to address its total scalable market through strategic partnerships like this one:

“With few details disclosed regarding the proposed partnership, the total addressable market for electric vans is still vague. Despite a lack of clarity, RIVN is set to benefit from Mercedes’ scale while lending from its strong technology position. As the world accelerates its shift to EVs, Rivian has a solid opportunity to mount a challenge to Tesla’s current dominance.”

Kallo and Biard hold a $51 price target with an ‘Outperform’ rating on the stock. At the time of writing, shares were down just 1.6 percent on the day, but have surged over 14.5 percent since the partnership was announced last week.

Disclosure: Joey Klender is not a RIVN shareholder.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Investor's Corner

Tesla welcomes Chipotle President Jack Hartung to its Board of Directors

Tesla announced the addition of its new director in a post on social media platform X.

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Credit: @ArthurFromX/X

Tesla has welcomed Chipotle president Jack Hartung to its Board of Directors. Hartung will officially start his tenure at the electric vehicle maker on June 1, 2025.

Tesla announced the addition of its new director in a post on social media platform X.

Jack Hartung’s Role

With Hartung’s addition, the Tesla Board will now have nine members. It’s been a while since the company added a new director. Prior to Hartung, the last addition to the Tesla Board was Airbnb co-founder Joe Gebbia back in 2022. As noted in a Reuters report, Hartung will serve on the Tesla Board’s audit committee. He will also retire from his position as president and chief strategy officer at Chipotle, and transition into a senior advisor’s role at the restaurant chain, next month.

Hartung has had a long career in the Mexican grill, joining Chipotle in 2002. He held several positions in the company, most recently serving as Chipotle’s President and Chief Strategy Officer. Tesla highlighted Hartung’s accomplishments in a post on its official account on X.

“Over the past 20+ years under Jack’s financial leadership, Chipotle has seen significant growth with over 3,700 restaurants today across the United States, Canada, the United Kingdom, France, Germany, Kuwait and the United Arab Emirates. Jack was named ‘CFO of the Year’ by Orange County Business Journal and Best CFO in the restaurant category by Institutional Investor,” Tesla wrote in its post on X.

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Tesla Board and Musk

Tesla is a controversial company with a controversial CEO, so it is no surprise that the Board of Directors tend to get flak as well. Two weeks ago, for example, Tesla Board Chair Robyn Denholm slammed The Wall Street Journal for publishing an article alleging that company directors had considered a search for a potential successor to Elon Musk. Denholm herself has also been criticized for offloading her TSLA shares.

More recently, news emerged suggesting that the Tesla Board of Directors had formed a special committee aimed at exploring a new pay package for CEO Elon Musk. The committee is reportedly comprised of Tesla board Chair Robyn Denholm and independent director Kathleen Wilson-Thompson, and they would be exploring alternative compensation methods for Musk’s contributions to the company.

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Investor's Corner

Rivian stock rises as analysts boost price targets post Q1 earnings

Rivian impressed with smaller-than-expected losses & strong revenue, pushing analysts to raise price targets.

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(Credit: Rivian)

Rivian stock is gaining traction as Wall Street analysts raise price targets following the electric vehicle (EV) maker’s first-quarter earnings report. Despite a dip after the announcement, optimism surrounds Rivian’s cost control and upcoming lower-priced cars.

Last week, Rivian reported a better-than-expected Q1 gross profit, surpassing Wall Street’s forecasts with adjusted losses of $0.48 per share against expectations of $0.92 per share. The company also reported a revenue of $1.24 billion compared to the $1.01 billion anticipated.

However, the EV automaker cut its 2025 delivery forecast and capital spending due to President Donald Trump’s tariffs. It explained that it is “not immune to the impacts of the global trade and economic environment.” RIVN stock dropped nearly 6% post-earnings, closing at $12.72 per share.

Wall Street remains upbeat about Rivian, citing progress toward launching lower-priced vehicles in 2026 and effective cost management. On Monday, Stifel analyst Stephen Gengaro raised his RIVN price target to $18 from $16, maintaining a “Buy” rating. He highlighted Rivian’s “solid progress” toward key milestones.

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Conversely, Bernstein’s Daniel Roeska gave RIVN a “Sell” rating. However, Roeska also lifted his Rivian price target to $7.05 from $6.10, acknowledging “better” Q1 results. He warned that profitability remains distant and hinges on multiple product launches by the decade’s end.

Overall, Wall Street’s average price target for RIVN climbed from $14.18 to $14.31, a modest 13-cent increase reflecting positive sentiment. About one-third of analysts covering Rivian rate it a Buy, compared to the S&P 500’s average Buy-rating ratio of 55%.

On Monday, Rivian stock rose 2.7% to $14.64, slightly trailing the S&P 500 and Dow Jones Industrial Average, which gained 3.3% and 2.8%, respectively. The uptick may also stem from broader market gains tied to news of a temporary U.S.-China tariff suspension.

As Rivian navigates trade challenges and scales production at its Illinois factory, its Q1 performance and analyst support signal resilience. With lower-priced EVs on the horizon, Rivian’s strategic moves could bolster its position in the competitive EV market, offering investors cautious optimism for long-term growth.

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Investor's Corner

Tesla (TSLA) poised to hit $1 trillion valuation again amid reports of Trump China deal

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket.

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(Credit: Tesla)

Tesla shares (NASDAQ:TSLA) are on a tear on Monday’s premarket amidst reports that the United States and China have agreed to significantly roll back tariffs on each other’s goods for an initial 90-day period.

As of writing, the premarket price of TSLA shares suggests that the electric vehicle maker might end Monday with a $1 trillion valuation once more.

Tesla and China

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket. As noted in a report from Barron’s, these prices suggest that the company could achieve a trillion-dollar valuation again, a level not seen since late February. Similar to Tesla, the S&P 500 and the Dow Jones Industrial Average were also up 2.8% and 2.1%, respectively, on Monday’s premarket.

The United States and China’s decision to roll back its tariffs would likely be appreciated by CEO Elon Musk. Despite working for the Trump administration’s Department of Government Efficiency (DOGE), and despite Tesla being least affected by the Trump administration’s tariffs due to its strong domestic supply chains in the United States, China, and Europe, Musk has noted that he is a supporter of non-predatory tariffs.

The United States and China’s Agreement

In a joint statement from the United States and China posted on the White House’s official website, the two countries agreed to lower reciprocal tariffs on each other by 115% for 90 days. This means that the United States will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, as noted in an ABC 12 report. China, on the other hand, will also lower its tariffs on American goods from 125% to 10%.

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The talks were led by Chinese Vice Premier He Lifeng and Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, as per the joint statement. Bessent shared his thoughts about the matter in a comment in Geneva. “The consensus from both delegations is neither side wants to be decoupled, and what have occurred with these very high tariffs … was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade. And I think both sides are committed to achieving that,” he said. 

A spokesperson from China’s Commerce Ministry also shared a statement about the matter. As per the spokesperson, the deal was an “important step by both sides to resolve differences through equal-footing dialogue and consultation, laying the groundwork and creating conditions for further bridging gaps and deepening cooperation.”

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