Toronto, Ontario — In this weekly stock watch, Rivian gets a rise after analysts raise their targets; General Motors makes electrifying plans in Ontario; and Uber sets up two new streams for Canadian revenue.
Rivian is on the rise
Rivian’s been hot this summer—the EV company’s stock is up 60 percent through the month of July, as of Monday morning.
The OEM saw shares spike after receiving price target boosts from analyst Chris Pierce last week, who cited potential upsides in margins thanks to higher production and deliveries. Pierce had previously raised his adjustment from US$26 to US$28 in early July.
His new price target (US$31 per share) suggests a near 20 percent potential upside over the next year. He called Rivian a “demand creator” and said its SUVs are leading their market category, particularly over other electric SUV crossovers.
Rivian is scheduled to release its Q2 results next week, on Aug. 8. Despite Pierce’s target boosts and expectation of strong figures, he believes the OEM will maintain its 2023 production guidance.
As of 11 a.m. EST on Monday, shares of Rivian traded at US$26.93 per share; up 61.81 percent in the last month, and up 56.34 percent year-to-date.
What’s up in Ingersoll, Ont.?
General Motors has announced that its Ingersoll, Ont. CAMI Assembly Plant will start building EV battery packs and modules by mid-2024.
A new, 37,000 sq. m. expansion is planned, which will give room for the plant to expand its battery operations.
The plant was already Canada’s first large-scale EV manufacturing site, having retooled last year to build battery-electric delivery vans.
This new investment—the monetary amount of which was not disclosed—will support 300 jobs at the assembly plant, which currently employs 1,500 workers on a single shift.
As of Monday at 11 a.m., GM shares traded at US$38.21, down about one percent over the month of July, but up 12.95 percent year-to-date.
Uber’s new stream
You can now rent a car via the Uber app–but that’s not the only revenue stream the rideshare service is planning for Canadian customers.
While it’s not technically an Uber-based service—more on that later—users can now access rental bookings from Budget, Avis or Hertz from right inside the Uber application.
The service first launched in Canada this past May following its rollout in the U.S. and U.K.
It’s the same as booking any other rental, but users can compare current prices from popular rental companies. Uber did not get into the details of its rental pricing, but did disclose it will make money from in-app service charges.
This was the first of Uber’s two forays into the “rental” market, as the ridesharing company also plans to roll out its Uber Carshare service in Toronto, Ont., in the coming months.
Analysts suspect the move is a response to peer-to-peer ridesharing companies like Turo and Getaround, both of which grew their shares amid 2021’s car rental shortage. Uber had previously partnered with Getaround in 2018 to test services in San Francisco, but the program was later shut down so Getaround’s parent company could “think through the best way to offer Uber customers access to rentals in the Uber app.”
In 2021, the peer-to-peer market was worth an estimated US$1.6 million; by 2030, analysts project it could reach US$7.2 million.
“We believe that Uber has an unprecedented ability to bring carsharing to the mainstream unlike any other company in the market today,” said Uber’s general manager of mobility, Camiel Irving.
As if 11:30 a.m. EST Monday, Uber shares traded at US$49.19, up 13.94 percent over the last month and up a whopping US$49.20 year-to-date.
