Shares of Rivian Automotive Inc. were being driven toward a third-straight loss Monday, after Tesla Inc.’s first Cybertruck was rolled off the assembly line over the weekend.
“We see competitive pricing and specs for the Cybertruck as a fundamental and headline risk to [Rivian],” wrote Baird analyst Ben Kallo in a note to clients.
Rivian’s stock
RIVN,
dropped 2.5% in premarket trading. It has shed 4.2% over the past two sessions, after closing July 12 at a seven-month high.
Tesla shares
TSLA,
gained 2.0%, putting them on track to open at a 10-month high.
Rivian’s R1T electric truck has a starting price of $73,000 and the R1S sport-utility vehicle (SUV) starts at $78,000, while reports have the Cybertruck starting at around $40,000.
Tesla Chief Executive Elon Musk said in early 2023 that volume production of the Cybertruck would start in 2024. The Cybertruck was first unveiled in 2019, but faced a number of production delays since then.
Meanwhile, Baird’s Kallo also said despite Rivian’s (RIVN) strong second-quarter deliveries report, he was “cautious” about Rivian’s stock ahead of second-quarter results, which are due out Aug. 8, given concerns over the costs of the development of the electric vehicle maker’s Georgia facility.
“As both a positive and a negative, RIVN will need to raise capital in the near to medium term in order to fund the project and note that the recent stock appreciation may create an attractive opportunity for RIVN to execute an equity raise,” Baird wrote.
Rivian’s stock has run up 80.8% over the past three months through Friday, while Tesla’s stock has run up 50.4% and the S&P 500 index
SPX,
has gained 7.1%.