Rivian Automotive and Tesla are both preparing to report their third-quarter deliveries. Rivian is more likely to beat consensus expectations than Tesla but both electric-vehicle stocks are worth having in your portfolio, according to analysts at Baird.
However, strong demand in China for the refreshed Model 3 vehicle is likely to give a longer-term boost to sales, despite a difficult environment for selling new vehicles, Kallo wrote. He also said higher prices for the Model 3 and Model Y should support margins. He kept his $300 target price and Outperform rating on Tesla stock.“We continue to believe Tesla is best positioned among its peers and recommend [it] as a top pick for 2H23 [the second half of 2023],” the Baird analyst said.
“We are designating Rivian as a bullish Fresh Pick into Q3 deliveries which we expect will beat consensus. Concerns regarding third party reports of weakening demand have led to recent weakness in the stock and we believe underlying demand remains strong with production improving,” Kallo wrote.