When Tesla’s (TSLA) stock rebound ended last summer in June 2023, the bearish sentiment continued through this year. Tesla’s lower highs continue today but could end. This negative sentiment reversal is more applicable to Tesla’s truck electric vehicle rival, Rivian (RIVN).
Rivian shares gained 12.6% in the last week as short-sellers holding a 16.35% short float covered. Bears did not expect the company would release more affordable, midsized models. More importantly, Rivian announced that it would expand its plant in Normal, Illinois. It will pause its plans for its plant in Georgia, saving billions in costs.
Rivian’s Normal plant has a capacity of 215,000 units. Should demand strengthen by 2026, the EV supplier could achieve economies of scale.
Truck EV Market Watch
Ford’s (F) cutback on expensive Lightning F-150 EVs would benefit the truck EV market. It opens a sales growth opportunity for Rivian. In addition, Tesla may build excitement over its Cybertruck. However, Rivian has an edge. Consumer Reports added Rivian’s R1S and R1T to the top brands, as measured by satisfaction. Rivian joins luxury automobile firms on the list. That includes BMW, Porsche, Tesla, Hyundai’s Genesis, and Lexus, a division of Toyota Motors (TM).
Hybrid Vehicle Watch
Automobile investors who are not convinced that the EV sector will thrive may consider Toyota stock instead. Toyota is a leader in the hybrid vehicle market. Hyundai is also growing its line-up of hybrid vehicles.
