Rivian and Lucid are seen shifting from story stocks to production players in 2022
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Rivian Automotive (NASDAQ:RIVN) and Lucid Motors (NASDAQ:LCID) head into next week with investors looking to recharge the growth buzz over the long-term prospects for the electric vehicle startups.
Despite the increased focus on valuation across the market, Bank of America is defending its Buy rating on both of the EV stocks and has them listed among its top auto sector picks for 2022.

Rivian Automotive (RIVN) is seen as one of the most viable picks among the universe of startup electric vehicle automakers as a relatively competitive threat to the universe of incumbent automakers and adjacent verticals. Crucially, RIVN is seen having a comprehensive and well-defined business model that addresses all stages of the vehicle life-cycle.
BofA's bull take on Rivian: "We expect progress on both of these fronts through 2022, specifically a sequential ramp in production and deliveries quarter after quarter. We also anticipate continued growth in RIVNâs pre-order/order backlog, which currently stands at >55k for R1S/R1T and 100k order from AMZN for EDV. All of these dynamics should be supportive for the stock in 2022."
The positive view from the firm on Lucid (LCID) is based on 2022 being characterized by the early stages of commercialization of the Air sedan, as well as the concurrent production ramp in its Casa Grande, Arizona facility.
BofA's bull take on LCID: "Encouragingly, start of production by LCID was achieved in September 2021 and initial deliveries achieved in October 2021, both important hurdles for the company. We expect progress on both of these fronts through 2022, specifically a sequential ramp in production and deliveries quarter after quarter. We also anticipate continued growth in LCIDâs reservation/order backlog, which currently stands at >17k for the Air. All of these dynamics should be supportive for the stock in 2022."
Rivian and Lucid can not be evaluated on a traditional valuation basis with the delivery ramp still in the future. On a momentum basis, both stocks are in reverse over the last month, although LCID took back some ground on Friday. See the chart of Rivian and Lucid vs. Tesla and General Motors.

Read more about the impact of GM, Ford and Volkswagen charging into the EV market.