By Sam Boughedda
Investing.com — Rivian Automotive Inc (NASDAQ:RIVN) shares are up more than 4% Tuesday after Redburn analyst Charles Coldicott started the company's shares at a buy with a $141 fair value estimate. However, Coldicott also initiated Lucid Group Inc (NASDAQ:LCID) with a neutral rating.
Speaking on Rivian, the analyst told investors in a research note that he believes demand will "outstrip Rivian's ability to produce" while also describing the company's vehicles as having "incredible acceleration given the vehicle size."
Coldicott also noted that Rivian beat Tesla (NASDAQ:TSLA), Ford and GM to market with its first electric pickup.
On Lucid, the analyst set a $39 fair value estimate, saying the company has a great product. Coldicott added that the company's powertrain technology "surpasses" Tesla in some aspects. However, the analyst said that Rivian is more directly competing with Tesla with its debut model, and therefore, he sees more significant risks.
Although Coldicott was more optimistic on Rivian's near to mid-term prospects, Lucid's shares have provided the best return on Tuesday with a 7% rise.