Rivian is 'well positioned' for future growth: Autoblog
Mizuho analysts downgraded EV makers Rivian (RIVN), Tesla (TSLA), and Nio Inc. (NIO) to Neutral ratings on slowing EV demand, even in Chinese markets. Autoblog Editor-In-Chief Greg Migliore weighs in on the rising popularity of Korean automakers and where Rivian's vehicles have room to run in this auto market.
"Rivian is well positioned for growth a few years down the road. I think what is tricky for them is they started out with the R1S and the R1T... which are pretty expensive," Migliore says. "They're definitely luxury items. They bring that lifestyle sort of approach to well-heeled consumers who want to have a discussion piece when they pull up wherever they might be going."
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Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
AKIKO FUJITA: Greg, I'm curious where the Korean carmakers-- where you think they're positioned in all this. When you think about what's already on the market, not necessarily what's about to come to market, I mean, it feels like they have the most value. I mean, I'm just thinking about just what-- the kind of cars I see on the road out in California. It feels like if you're looking for a fair price point that's not, you know, more than 40/50, that's kind of a good spot where the Korean carmakers are competing in right now.
GREG MIGILORE: That's a great point. I think Hyundai and Kia both have several competitive attractive EVs on the market that you could get right now. The Kia EV6, it's fun to drive. It has great range. It's won a lot of Car of the Year awards.
Then, you look over at Hyundai. And they have the IONIQ 5, which is a hatchback, kind of, like, 1980s almost, like, Tron sort of styling. And then, the Hyundai IONIQ 6, which is this swoopy almost, like, art deco coupe-styled four door, which, you know, they have the same powertrain.
So they both have great range. They're fun to drive. So I think the Korean carmakers are very well-positioned. A little bit more moderate price points.
Their new brand of Hyundai Motor Co is Genesis. They've been around about 10 years. They're getting into the EV space with things like the GX60.
Things like that. The GV50, excuse me. And just trying to make a more well-rounded portfolio.
JOSH LIPTON: And Greg, I'm also interested to get your take on Rivian, because that was another one of those names the team at Mizuho downgraded today. You know, you hear folks say, Greg, you know, Rivian, strong brand. But then, they'll also point out just the R1, you know, model pricing is just kind of tough in this environment. What are your thoughts on that one?
GREG MIGILORE: So I think Rivian is well-positioned for growth in a few years down the road. I think what's tricky for them is they have started out with the R1S and the R1T. So that's the SUV and the truck, which are pretty expensive.
They're definitely luxury items. They bring that lifestyle sort of approach to, you know, well-heeled consumers who want to have, you know, a discussion piece when they pull up wherever they might be going. Now a couple of weeks ago, they showed the R2 and the R3, which are lower priced vehicles. Very attractive compelling range.
We think they're going to come in, again, at a much lower more attainable price rate. You can order one. They're a hundreds bucks.
I think it's a refundable deposit. But like with Lucid, like with Fisker, a variety of startups, there's always a degree of uncertainty with Rivian. I think among the startups, they're probably one of the better ones that's positioned, though, from what we're seeing.
