Ford and Rivian Announce Big Developments -- But Are They Buys Now?

Core Insights - The automotive industry is experiencing a shift in investor sentiment due to advancements in technology, including autonomous driving and AI integration [1][2] Rivian - Rivian has developed its own AI chip to enhance autonomous driving capabilities, which can process 5 billion pixels per second [4][5] - The new Autonomy+ driver-assistance package will be priced at $2,500 upfront or $49.99 per month, significantly cheaper than Tesla's equivalent offering [6] - Despite these advancements, Rivian's developments may not significantly alter the investment thesis until further revenue streams are established [7][8] Ford - Ford plans to take a $19.5 billion charge to pivot from full electric vehicles to a focus on hybrids and more affordable EVs, expecting hybrids and EVs to make up 50% of global volume by 2030, up from 17% this year [9][10] - The company is also entering the battery energy storage systems market, repurposing a plant in Kentucky and investing approximately $2 billion over the next two years [11][12] - Ford's strategic pivot towards hybrids and energy storage reflects a response to market demand, which could be beneficial for investors [15]