Tesla, Rivian Stocks Driven Higher by Analysts' Optimism

Shares of electrical conveyance makers rallied successful intraday trading Friday aft analysts astatine Mizuho issued value target bumps for Tesla (TSLA) and Rivian (RIVN). 

Tesla banal climbed 3.5% to $249.44, Rivian surged 12% to $18.76, and Lucid Group (LCID) jumped 22% to $4.17 arsenic of 1:30 p.m. ET Friday.  

Mizuho raised its Tesla value target to $230 from $180, maintaining a "neutral" rating, based successful portion connected nan company's better-than-expected second-quarter deliveries report.

Mizuho Managing Director Vijay Rakesh noted that caller European Union (EU) tariffs are impacting higher Model 3 pricing, pinch 2024 world EV income now expected to turn 15% year-over-year. 

The Bearish Case for Tesla

Meanwhile, Tesla banal was deed pinch a downgrade from UBS connected Friday, pinch analysts uncovering it “increasingly difficult to warrant [Tesla’s] valuation.”

Analysts Joseph Spak, Patrick Hummel, and Alejandro Nuno bumped Tesla down to "sell" from "neutral," arguing that nan company’s stock value comes pinch a baked-in anticipation of early success. 

“TSLA has ever had a premium attached to it for other, future, maturation initiatives. Properly valuing that optionality is difficult,” nan analysts' statement said. “This premium has widened of late, we believe, connected AI enthusiasm.”

“While TSLA is investing heavy successful AI and nan tech is making progress, finance is costly, gait of betterment whitethorn slow and nan payoff is agelong dated,” UBS added. “If marketplace enthusiasm for AI diminishes, this whitethorn effect TSLA's multiple.”

Despite nan downgrade, UBS really raised its value target for nan institution to $197 from $147.

Rivian and Lucid

Mizuho besides took a bullish stance connected Rivian, upping its value target to $15 from $11 and issuing a "neutral" standing acknowledgment to a "better equilibrium expanse and little liquidity risk.”

Rivian precocious reported 13,790 second-quarter deliveries, compared pinch analysts' statement anticipation of 11,510 deliveries, according to estimates compiled by Visible Alpha.

Rivian’s deliveries grew 9% year-over-year, while Tesla’s fell 5%, nan patient noted. However, Rivian did not set its anticipation of low-single-digit percent full-year growth, which “which could constituent to immoderate 2H challenges,” Mizuho said. 

Looking ahead, nan “key for RIVN will beryllium its expertise to thrust further request successful nan high-end premium EV segment,” successful nan 2nd half of 2024 and 2025, nan patient added. 

Lucid, meanwhile, announced second-quarter deliveries of 2,394 vehicles earlier this week, a astir 70% summation year-over-year. Shares person gained much than 40% complete nan past 5 sessions.