Why is Rivian doing so badly?
Rivian (RIVN) is losing its momentum after the electric vehicle carmaker halved its production forecast due to ongoing supply chain challenges. When reporting Q4 2021 earnings, Rivian beat on adjusted EBITDA but missed on both total revenues and total number of vehicles produced.
A slow economy doesn't bode well for companies like Rivian that are just getting started in a high-growth industry like electric vehicles. The selling pressure is only fueling investors' fears in Rivian as the company approaches two crucial dates.
Shares of the electric vehicle maker Rivian Automotive (RIVN -4.74%) fell this morning, likely because investors were processing news about growing frustration about wait times for customers who've pre-ordered Rivian vehicles.
Rivian said it still expects to produce 25,000 vehicles in 2022, which would require a continued ramp up. Even with the earnings miss, Wedbush analyst Dan Ives says Rivian is back on track after a "horror show coming out of the gates with its IPO," due to its top line growth and production ramp up.
During an interview with the Tesla Silicon Valley Owners Club, Tesla CEO Elon Musk said that both Lucid Motors and Rivian, two US-based electric vehicle startups, are trending toward bankruptcy. The CEO said: Unless something changes significantly with Rivian and Lucid, they will both go bankrupt.
Is Rivian stock a good investment? Whether Rivian stock is a good investment depends on your investment goals and your evaluation of the company. As of May 3, 2022, Rivian's market cap was more than $28 billion. Yet, Rivian is still seen as having too high of a valuation, according to some Wall Street analysts.
R1T Adventure Delivery Estimates
Quad-motor builds of the R1T Adventure have been delivered in record time, with at least one delivered in less than 40 days from the date of reservation. The shortest projected time frame for the R1T Adventure delivery is within 2-3 months.
Rivian takes care of their employees with great benefits, free charging at work, great food on campus, great stock options. And it feels good to work for a company that's pushing EVs further than they've ever gone.
Rivian was briefly worth more than Ford and GM last year. Its stock collapsed under those nosebleed valuations, but it still remains on track to produce 25,000 vehicles this year. Rivian is still better-run than many other speculative EV makers, and it could be a compelling buy at these depressed levels.
Rivian's net loss for the first quarter of 2022 was $1.593 billion, compared with $414 million in like-2021.
Is Rivian a long term investment?
There is no doubt that Rivian is a risky investment. RIVN is a start-up electric vehicle maker. The company is currently in losses (not unexpected for a start-up with high growth expectations), and it is expected to only turn EBITDA-positive in fiscal 2026 (as per consensus estimates obtained from S&P Capital IQ).
Analyst Estimates for Rivian 2025
Overall, the Rivian stock price prediction for 2025 is $58.50. Given the stock market's volatility, analysts will adjust these forecasts over the coming years.
Stock Price Forecast
The 15 analysts offering 12-month price forecasts for Rivian Automotive Inc have a median target of 50.00, with a high estimate of 83.00 and a low estimate of 27.00. The median estimate represents a +45.14% increase from the last price of 34.45.
Amazon is starting a nationwide rollout of Rivian's delivery vans. The tech giant is set to purchase 100,000 of Rivian's EVs by 2030.
Millions of shares being sold, report says
Amazon owns about 17.7% of Rivian, while Ford owns 11.4%. Amazon was not expected to sell, Bloomberg reported.
Ford began investing in Rivian in 2019
Ford is an early backer of Rivian, first investing in the company in 2019 as part of a strategic partnership to co-develop an electric truck. That project was later scrapped, and Ford began working on a direct competitor of Rivian's R1T pickup, the electric F-150 Lightning.
Rivian has received 10,000 more reservations, at an average $93,000, since its March price hike. The electric truck maker Rivian confirmed Wednesday that the line of people waiting for its trucks has been getting longer, far faster than it's been building them.
Rivian R1S: Price and availability
Both of these are available to pre-order now with a $1,000 deposit, but the fully-loaded Launch Edition (Originally $75,500) is sold out. Initially Rivian said deliveries would begin in March 2022, though the majority of the first wave would take place in Summer and Fall.
RJ Scaringe founded and runs electric car maker Rivian Automotive, which listed its shares on the Nasdaq exchange in November 2021. In 2009, Scaringe founded the car company that became Rivian Automotive with a goal to build vehicles that are rugged, luxurious and battery powered.
Who is the CEO of Rivian?
But R.J. Scaringe, the founder and CEO of Rivian, is out to prove they can also be fierce. He calls Rivian's all-electric SUV an adventure vehicle — something drivers could use to both tackle a trail and get their groceries.
Rivian, the buzzy electric vehicle company backed by Ford and Amazon, reported a net loss of $1.59 billion in the first quarter of 2022 based on $95 million in revenue. The company said it delivered 1,227 vehicles to customers during the past three months, bringing its total number of deliveries to 2,148.
After a blindingly successful initial public offering in November 2021, Rivian Automotive shares slammed into reverse as the company struggled to ramp up production of its electric trucks.
