General Motors and Amazon are reportedly in talks to invest in Detroit start-up Rivian Automotive, and that indicates a massive shift in the "next and potentially imminent" electric vehicle market of pickup trucks, Morgan Stanley said Wednesday.
"The highly lucrative and US-dominated pickup truck market" is a key focus for investors due to the "culmination of battery cost reduction, architecture, duty cycle, and price point," Morgan Stanley analyst Adam Jonas said. Jonas earned a wide following on Wall Street due to his early calls on Tesla and the rise of electric vehicles.
Morgan Stanley featured Rivian earlier this week as the "next serious competition" for Tesla. The start-up's "clean sheet" approach could make it "the next Tesla," Jonas said.
"We have focused considerable research effort on the theme of electric pickup trucks in recent days," Jonas said. Rivian emerged as the firm's top pick to challenge Tesla in the coming years due to Rivian's "access to talent & capital focused on the fastest growing segments of pickup trucks & SUVs," he said.