Rivian already has plenty of problems, and now the company has to justify its share-price run-up. It’s not surprising that the company has been burning cash as it ramps up production and sales. Rivian has gone through more than $4 billion of its cash hoard in the last year — and that’s with no efforts underway to boost production volume in 2024.
RIVN Warning: This May Be Your Last Chance to Escape Rivian Stock.
The company said its backlog of orders had shrunk, partially due to fulfillment, but also due to cancellations and fewer new orders. Enter your email address below to receive the latest news and analysts’ ratings for Rivian Automotive and its competitors with MarketBeat’s FREE daily newsletter. On the date of publication, the responsible editor did not have (either directly orindirectly) any positions in the securities mentioned in this article. As a result, Rivian remains a ‘show-me’ story, worth monitoring closely before making a long-term investment. Right now, the signs seem to be pointing toward a stable and realistic future for the company, but that isn’t guaranteed considering the broader challenges the general EV market currently faces. Unfortunately, the expansion has and will continue to be mostly at the expense of its shareholders.
Rivian Automotive MarketRank™ Stock Analysis
Rivian Automotive will release its quarterly results on Aug. 6, after a substantial stock rally already took place. Let’s take a big-picture perspective, though, as the stock is still down year-to-date and over the past 12 months. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Sign-up to receive the latest news and ratings for RIVN and its competitors with MarketBeat’s FREE daily newsletter.
Rivian Automotive, Inc. (RIVN)
Rivian Automotive (RIVN) raised $9.1 billion in an IPO on Wednesday, November 10th 2021. 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. Bear in mind, Rivian is a consistently income-negative company and, according to a Barron’s report, profits “aren’t expected for years” for Rivian Automotive.
About Rivian Automotive Stock (NASDAQ:RIVN)
By mid-2022 the company had delivered more than 8,000 vehicles with production ramping quickly. Rivian’s stock price recovered significantly through the first half of 2023, reaching a period high of $28.06 on July 27, 2023. However, momentum has subsequently reversed with a $1.5bn convertible green note received poorly by the financial markets,[153] causing the share price to decline to a https://www.1investing.in/ daily low of $15.88 on October 26, 2023. Hence, Rivian is in a precarious spot financially, and the massive investment from Volkswagen should help steady the ship. However, it must sustain strong demand for its vehicles in the coming quarters to maintain momentum. The R2 and its other budget-friendly models will be crucial in achieving this, but they won’t scale significantly until 2027.
That’s why hybrid vehicle sales have grown alongside those of EVs, Caldwell said. The past few years were eventful, though, with its cars finally hitting the roads, facing production challenges while grappling with major cash flow issues last year. However, since then, we’ve seen its top-level management looking to build its brand, improve delivery volumes, and introduce new, cost-effective EV models. The R1T comes with 8 different drive modes geared for offroading, city adventures, and everything in between. Among the choices is the “Drift” mode which proactively distributes power to offset traction control and increase the “fun” factor.
The highest price target for RIVN is $44.00, while the lowest price target for RIVN is $13.00. The average price target represents a forecasted upside of 22.02% from the current price of $16.22. Consequently, we’ve seen Rivian stock surge north of 57% in the past month. The announcement was soon followed up by Rivian’s management, reaffirming its full-year production guidance and that it would likely generate positive gross profit in the fourth quarter (Q4).
- The company designs, develops, manufactures, and sells electric adventure vehicles and accessories through direct sales to consumers and commercial markets.
- It now plans to postpone the construction of a multibillion-dollar plant in Georgia, and will instead expand its existing facility in Illinois.
- Electric vehicle stocks are not doing well in 2024, with most of them being down by double digits.
- Investors can only weigh those factors and decide what they see as the best course.
- While EV leader Tesla also has air suspension, its high-end Model S still requires manual adjustment for suspension height.
Therefore, partnerships like the one with Volkswagen will be incredibly important as it continues to burn through a boatload of cash each quarter. The R2 SUV is a sleeker, more budget-friendly alternative to the company’s pricier R1 models. Despite the slightly higher price point than other SUVs in this range, the R2 offers multiple stand-out features that justify the bump. It operates on a brand-new EV platform with a revamped battery setup, supporting a robust tri-motor system that can get up from 0 to 60 mph in less than three seconds. The Rivian stock turnaround started in March when the EV maker unveiled plans for new, affordable models.
Since then, RIVN stock has decreased by 30.9% and is now trading at $16.22. MarketBeat’s analysts have just released their top five short plays for August 2024. On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.
The consensus among Wall Street 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. The R1T is a highly types of cheque in india configurable pickup while the R1S is an off-road capable SUV. The R1T is hailed as the world’s first EV adventure vehicle, it began production in early 2021 and the first deliveries were made later that same year.
Considering the Volkswagen news, investors might be wondering if they’d be well-advised to buy Rivian stock ahead of that update. As of December 2021, Rivian is a public company trading under the symbol RIVN on the Nasdaq stock exchange. “We firmly believe in the full electrification of the automotive industry, but recognize in the short-term, the challenging macro-economic conditions,” Chief Executive RJ Scaringe said in the company’s statement.
That includes engineering specifications such as easily removable batteries and batteries that can be easily recycled or repurposed into stationary power packs when their EV lifespan is spent. But that’s the question, and one factor that could lead investors to lock in recent gains and sell Rivian shares. For long-term investors who now see Rivian as having the means to successfully launch the R2 and R3, the investment case remains positive, though.
Rivian Automotive Inc. emerged as a darling of investors — a brand with promise for bringing the “cool” factor to the once-red-hot market for electric vehicles. According to 24 analysts, the average rating for RIVN stock is “Buy.” The 12-month stock price forecast is $19.3, which is an increase of 18.99% from the latest price. 25 Wall Street analysts have issued “buy,” “hold,” and “sell” ratings for Rivian Automotive in the last year. There is currently 1 sell rating, 10 hold ratings and 14 buy ratings for the stock.