What took situation
Six days ago, Tesla (NASDAQ:TSLA) stock dropped in response to feedback from would-be rival Lucid Motors (coming public via special-cause acquisition firm (SPAC) Churchill Capital Corp IV (NYSE:CCIV) soon), whose CEO Peter Rawlinson boasted that his firm’s original “Air” electric automobile might per chance well maybe per chance be extra efficient than a Tesla Model S and purchase away $900 million in sales that might per chance well maybe per chance additionally otherwise possess long gone to Tesla.
Tesla stock dropped on this reminder of increased competitors, so I guess it makes sense that at the present time, we’re seeing Tesla stock rise in response to recordsdata than some other competitors is falling extra within the support of on this depart.
Image source: Getty Photos.
As CNBC first reported tiresome final week, and as Tesla fan place Teslarati re-reported at the present time, growth delays and present-chain disruptions from the pandemic possess forced electric-truck upstart Rivian to prolong deliveries of its ballyhooed R1T electric-pickup truck till September.
Now the dazzling recordsdata for Rivian is that it appears to be like to be prioritizing manufacturing for its marquee buyer Amazon.com (NASDAQ:AMZN) and mute plans to put a prime installment of 10,000 electric Amazon autos on the facet road “as early as next 365 days.” Nevertheless the dazzling recordsdata for Tesla is that, with Rivian specializing in defending its most well-known buyer chuffed, Tesla might per chance well maybe per chance additionally no longer need to compete with a original electric-pickup truck for a couple of extra months now.
That is in point of fact unalloyed dazzling recordsdata for Tesla. I mean, Amazon had already tapped Rivian to invent a full of 100,000 electric-transport autos for its armies of parcel-toting transport drivers. This wasn’t alternate Tesla used to be going to take hold of away despite the proven reality that Rivian had to prolong manufacturing of these autos.
The place Tesla can mute compete within the electric-truck (as in opposition to the electric-automobile) market is on sales to individual customers, and that’s the competitors that has been pushed support a bit by Rivian’s manufacturing delays.
Granted, there might per chance be mute Ford, Total Motors, and a full host of different would-be electric-automobile firms all coming down the pike. For the time being, though, at the present time’s recordsdata used to be dazzling sufficient to learn get Tesla stock 2.2% by the closing bell.
This text represents the idea of the creator, who might per chance well maybe per chance additionally merely disagree with the “legit” recommendation situation of a Motley Fool top rate advisory carrier. We’re motley! Questioning an investing thesis — even regarded as one of our possess — helps us all think critically about investing and fabricate selections that merit us change into smarter, happier, and richer.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and Tesla. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool has a disclosure policy.”>