Rivian Automotive vs. Lucid Group? Morgan Stanley says there is a clear winner
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Morgan Stanley said a survey of its clients in regard to which stock they would like to own between Rivian Automotive (NASDAQ:RIVN) and Lucid Group (NASDAQ:LCID) indicated a clear winner.
87% of the respondents said they like Rivian (RIVN) as an investment over Lucid (LCID).
Analyst Adam Jonas: "An investment in either company requires a need for long-term thinking and preparation for significant potential volatility around the ramp to high volume manufacturing. Technical factors aside (LCIDâs 30% free float, 17% short base, high retail component, etc.), the market appears to be making the case that LCID can scale its award-winning Air into new segments and far lower price points to achieve many hundreds of thousands or potentially millions of units of EVs at some point in the future."
Morgan Stanley said it agreed with the consensus client pick of RIVN over LCID. Jonas and team noted that they believe LCID has some ingredients to be a relevant and long-standing competitor in the electric vehicle race, but have much more conservative expectations that drive the near-term price target of $16.
Meanwhile, Morgan Stanley has an Overweight rating on Rivian and price target of $147, which reps the potential for shares to double.
Rivian Automotive (RIVN) is down 38% on a year-to-date basis and Lucid (LCID) is off 27%.
Next step: Compare ratings, performance marks and valuation grades on Rivian and Lucid side by side.