Rivian Automotive Inc RIVN shares are trading lower by 7.7% to $15.08 during Tuesday’s session. Shares of several stocks in the broader automotive sector are falling after inflation for January 2024 dipped slightly but missed economists’ forecasts. According to analysts, Rivian Automotive’s stock has a predicted upside of 34.76% based on their 12-month stock forecasts. Rivian said that it expects to generate most of its revenue in the near term from sales of vehicles, accessories, and regulatory credits.
- Once fully operational in 2030, Rivian expects production to increase by 400,000.
- Those quarterly losses were more than four times larger than the same quarter a year earlier.
- Rivian Automotive, Inc. is an OEM EV manufacturer focused on pickup trucks and SUVs.
- The company indicated that its operating expenses have increased over the last eight quarters as the development of its R1T, R1S, and EDV vehicle programs continues to advance.
- However, momentum has subsequently reversed with a $1.5bn convertible green note received poorly by the financial markets,[147] causing the share price to decline to a daily low of $15.88 on October 26, 2023.
Should Rivian maintain its current trajectory and get a boost from these other developments, profitability looks all the more likely. In fact, if all goes according to plan, Rivian could rise to become one of the top EV manufacturers in America by 2027. But since triangle pattern forex its historic start, Rivian has faced a daunting road in its journey to cement itself as a leader in the EV industry. While EV adoption is expected to grow at an exponential rate over the next decade, there is no promise it will be able to ride that momentum.
It also began reporting revenues, raking in $95m in the quarter from its first deliveries. Rivian might have debuted on the stock market at the worst possible time in the last 14 years. The EV maker floated on a buoyant Nasdaq through an IPO in November 2021.
The EV maker posted its Q earnings on 11 August, with second quarter revenue above estimates, but expects a wider loss for the year. Rivian posted earnings for the first quarter of 2022 (Q1 2022) on 11 May. At that point in the company’s evolution, investors were mainly watching for production volumes, available cash to sustain loss-making operations and how costs are impacting operations. Rivian’s total book value, the difference between its assets and liabilities, was $5.5 billion as of June 30, 2021. Total cash and cash equivalents on the company’s balance sheet at the end of the June were $3.7 billion.
Elon Musk’s electric vehicle maker lost more than $94 billion in market valuation in the… Rivian Automotive, Inc. engages in the design, development, and manufacture of category-defining electric vehicles and accessories. The company was founded by Robert J. Scaringe in June 2009 and is headquartered in Irvine, CA. Until the quarterly period ended Sept. 30, 2021, the company had not produced or delivered any vehicles and thus had not generated substantial revenue. It delivered its first 11 R1Ts in September 2021, having produced a total of 12 during the quarter. The company said that these deliveries generated estimated revenue of between $0 and $1 million for the three-month period ended Sept. 30, 2021.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Rivian’s Q4 earnings report is scheduled to be released on Feb. 21, which should provide a clearer picture of its future. Perhaps most importantly, the company is beginning construction of its new 1,800-acre factory outside Atlanta this year. With phase one expected to be completed in 2026, it will increase total output by 200,000 units. Once fully operational in 2030, Rivian expects production to increase by 400,000. Over the last three years, Rivian has made significant progress in terms of production.
Rivian Stock Falls As EV Deliveries Lag As Tesla Beats Expectations
The company has been able to finance its operations primarily through the sale of securities and from borrowing. 22 Wall Street equities research analysts have issued “buy,” “hold,” and “sell” ratings for Rivian Automotive in the last twelve months. There are currently 8 hold ratings and 14 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should “moderate buy” RIVN shares. The company offers five-passenger pickup trucks and sports utility vehicles under the R1T and R1S labels.
Funding
As of December 2021, Rivian is a public company trading under the symbol RIVN on the Nasdaq stock exchange. Higher inflation rates can lead to increased costs for raw materials, labor, and other operational expenses. Analysts like Rivian Automotive more than other Auto/Tires/Trucks companies. The consensus rating for Rivian Automotive is Moderate Buy while the average consensus rating for auto/tires/trucks companies is Hold. The company is scheduled to release its next quarterly earnings announcement on Wednesday, February 21st 2024. The Rivian R1S began production in 2022 and began deliveries later that year.
However, on October 11, shares tumbled more than 7% to a new three-month low after a recall due to a defect related to a loose nut resulting in a loss of steering. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Rivian Automotive will often yield whether or not the company has approved a buyback program recently.
Buyback programs usually serve as a support for share prices, serving as a backstop for demand. Rivian, as an electric vehicle manufacturer, could be affected by changes in inflation rates due to various factors. If inflation rates don’t fall as much as expected, it could signal ongoing or potentially increasing cost pressures for the company. Rivian faces a wide range of competitors both in the broader automobile industry and in the small, but fast growing EV segment. The company expects competition in the EV market to intensify due to a greater regulatory push for alternative fuel vehicles and other factors. Rivian’s competitors include, as mentioned, Tesla and Ford, and also other traditional automakers making a big push into the EV market, such as German-based Volkswagen AG (VOW3) and General Motors Co. (GM).
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Based on the views of 21 analysts compiled by MarketBeat, as of 18 October, Rivian stock was a “moderate buy”, with 15 analysts marking the stock as a “buy”, seven in “hold” and two in “sell”. Further knocks followed in March with the announcement of the delay of deliveries of SUVs that month. The price fell to $24.86 at the end of May with https://g-markets.net/ leaks of Ford considering selling 8 million of its 102 million shares and at the time Ford declined to comment. Rivian is also building the Rivian Adventure Network, a series of charging stations along popular routes and out-of-the-way destinations. The charging stations can add up to 120 miles of range to a battery pack in just 20 minutes.
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Royal Bank of Canada previously provided a more optimistic $75.00 target, but has amended the price target to $62.00. Among analyst views compiled by CNN, Rivian had a median price target of $50.50, with a high of $83.00 and a low of $27.00. The median of Rivian stock predictions amounted to a potential upside of 60% on Rivian’s current price. In an analyst consensus compiled by MarketBeat, they expect the EV maker’s earnings to grow from -$7.37 per share to -$5.35 per share in the next year. In the previous quarter, Rivian Automotive missed the analysts’ consensus estimate of -$1.67 by 0.22 with a reported earnings per share (EPS) of -$1.89. A negative earnings per share (EPS) of -$1.43 beat analyst expectations of a $1.50 loss a share.
Sitting at just under $8 billion today, at its current pace, Rivian only has enough cash to last another two to three years at best.
The R1S comes with a 260 to 320-mile range and can also wade through 3 feet of water. The R1S also boasts the ability to rock crawl up a 100% incline or 45-degree slope. Here’s our daily look at three charts connected to recent news-driven price moves, with key technical levels to monitor.