A host of Wall Street’s biggest banks remain bullish on electric vehicle maker Rivian, predicting that the company can still become Tesla’s next big competitor, despite the stock’s massive run up since its blockbuster IPO in early November.

Rivian founder RJ Scaringe.
Jamel Toppin/The Forbes Collection

A handful of major firms initiated coverage of Rivian on Monday, with several forecasting that the electric vehicle maker could in fact be the real deal and eventually compete with billionaire Elon Musk’s Tesla.

“We see it as ‘the one’ that can challenge Tesla,” wrote Morgan Stanley analyst Adam Jonas, citing Rivian’s compelling product, good management team, access to capital and its strategic relationship with Amazon.

The firm argues Rivian has an advantage in an “unaddressed” area of the market with its electric delivery vans, setting a price target of $147 for the stock, implying around 35% upside from Rivian’s current price.

Several other firms including Bank of America, Piper Sandler, Deutsche Bank and Mizuho also remain bullish on the company’s business plan and attractive product, according to recent analyst notes.

A few Wall Street banks stopped short of issuing “buy” ratings and remain neutral on Rivian, however: Goldman Sachs analysts for instance believe that despite the company’s massive growth potential, some of its advantages are “offset by full valuation.”

JPMorgan, which also initiated coverage with a neutral rating, argued that Rivian’s “compelling” growth prospects are balanced out by the need for significant capital to fund that growth and a high valuation which is “clearly already pricing in a lot.”

“15 years after Tesla, Rivian is redefining the EV market” with its electric SUV and pickup trucks as well as its electric delivery van,” according to analysts at Mizuho, who have a buy rating on the stock. “Longer term, we see beginnings of the next $1 trillion electric vehicle original equipment manufacturer.”

Wells Fargo, which started its coverage of Rivian with a neutral rating on Monday, admitted “there is much to get investors excited” when it comes to the electric vehicle maker. The firm’s main concern is that Rivian’s current sky-high valuation “leaves little room for error for a company with almost no manufacturing record,” according to Wells Fargo analyst Colin Langan.

Rivian went public at $90 billion valuation on November 10 in what was one of the biggest IPOs of 2021. With some investors betting that it could be the next Tesla, Rivian saw its stock skyrocket immediately following its public market debut–a testament to the massive investor interest in electric vehicles, despite the fact it has virtually no revenue yet. The company now has a whopping market value of more than $93 billion, and despite shares slumping in recent weeks, Rivian’s stock is still up nearly 40% from its IPO price of $78 per share.

That’s how much Rivian founder RJ Scaringe is worth, according to Forbes‘ estimates. After starting the car company in 2009, he was first outed as a billionaire by Forbes in 2020.

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