Bank of America likes these EV stocks the best once the market washout is over

Published Thu, Jan 6 202210:15 AM ESTUpdated Thu, Jan 6 202210:57 AM EST

Newly public electric vehicle companies cratered on Thursday, building on recent losses amid a rotation out of high-growth stocks, but Bank of America believes the long-term bullish theme remains intact. The firm said investors should expect these stocks to remain volatile "over the next 3-6+ months as the volume environment (production/sales) remains choppy and visibility is significantly lacking." But ultimately, Bank of America said that the "electrification revolution has finally arrived" and listed EV companies among the stocks it believes will outperform in 2022. When it comes to Rivian , which went public in 2021 , analysts led by John Murphy said the company is "one of the most viable among the universe of start-up electric vehicle (EV) automakers." The firm said Rivian's product line focused on trucks, SUVs and vans makes it a competitive threat to incumbent automakers. Murphy added that the company has "one of the most comprehensive and well-defined business models addressing all stages of the vehicle life-cycle." The firm believes 2022 will see the early stages of commercialization for several of Rivian's models. The stock, which was originally priced at $78 a share, went public on Nov. 10. It ended 2021 at $103.69. Shares of Rivian surged to a record high of nearly $180 on Nov. 16, but cratered to a 52-week low of $75.13 on Thursday. The stock fell 11.2% on Wednesday to close at $90.01 after Amazon announced a partnership with Stellantis , the automaker previously known as Fiat Chrysler. The tech giant has also backed Rivian. "We always knew that our ambitious sustainability goals in our last-mile operations would require multiple electric delivery van providers," an Amazon spokesperson told CNBC in an email. "We continue to be excited about our relationship with Rivian, and this doesn't change anything about our investment, collaboration, or order size and timing." Lucid is another EV company that hit the public market during 2021, choosing to debut through a reverse merger with a special purpose acquisition company . The stock ended the year with a 280% gain, but is down about 45% since its Feb. 18 all-time high. However, Bank of America likes the stock, pointing to the company's innovative technology, attra