Bank of America Cuts Price Targets for Lucid, Rivian and Tesla

Written by Claudio Afonso | info@claudio-afonso.com | LinkedIn | X

Bank of America analyst John Murphy has lowered the company’s price targets for three electric car makers, namely Lucid, Rivian and Tesla. In a new research note, the analyst emphasized that “demand will be the focus of these EV players in the first quarter of the year.”

Starting with Rivian, the analyst revised the company’s price target down from $25 to $21 while maintaining a Buy rating on the stock. With Rivian shares closing at $10.63 on Tuesday, the updated price target implies a potential upside of 97.5 percent.

Rivian R3 (Credit: Rivian)

On Tuesday — and through the end of April — Rivian began a campaign for its R1T and R1S model catalog offering $5,000 worth of XPEL Stealth paint protection film (PPF).

When it comes to Lucid Motors – which announced yesterday the delivery of 1,967 vehicles in the first quarter – the analyst reduced the price target to $ 3.50 from $ 4.50 while keeping a Neutral rating on the stock. Lucid stock closed Tuesday at $2.70 per share, resulting in a potential upside of 29.62 percent based on John Murphy’s new price target.

The price target of Tesla shares was also reduced by the analyst by $ 60 – to $ 220 from $ 280. Bank of America maintained the rating of Confidence on the stock.

In the latest update from the auto industry revealed this Tuesday, Tesla delivered more than 1,900 vehicles in China. Amid declining market share in the key auto market of China, Tesla announced last week that it is introducing a short-term 0% interest loan offer as a new incentive strategy.

That week was marked by the country’s Qingming Festival, a three-day holiday held every early April.

Written by Claudio Afonso | info@claudio-afonso.com | LinkedIn | X