James Picariello 5.0 2 ideas

Tesla faces a challenging setup and is unattractive. Core market auto volumes are flat, energy storage deployments are declining significantly, and further price cuts are likely needed. Combined with a high capex guidance of $20 billion, the company is expected to burn cash.

Rivian is a bullish story, primarily due to the upcoming R2 model. The R2 is forecast to sell around 85,000 units, which would more than double the company's current total sales volume of approximately 40,000 units. This presents a massive growth catalyst for the company.