Is Rivian ever going to go back up?
Rivian is also progressing fine with its production. Although supply chain issues impacted Rivian's production targets for 2022, the company recently reaffirmed its revised target of 25,000 EVs for the year. Data source: Rivian.
Topline. Shares of Rivian tumbled 7% Friday after the electric-vehicle maker reported lackluster quarterly earnings and warned that supply chain issues would limit vehicle production in 2022, but despite struggling since going public last year, analysts still love the stock and remain optimistic about a rebound.
This is Rivian, one of the three companies Sandy Munro says will survive. Peter Rawlinson, CEO of Lucid Motors, says that Rivian R1T should be priced at $95,000 or more to be profitable. One thing Rivian did wrong was raising prices after orders last year of vehicles, and causing a back lash with current customers.
Stock Price Forecast
The 14 analysts offering 12-month price forecasts for Rivian Automotive Inc have a median target of 45.00, with a high estimate of 108.00 and a low estimate of 24.00. The median estimate represents a +20.26% increase from the last price of 37.42.
The bottom line is that RIVN stock is a great name to buy for long-term investors because the Street is underestimating the strength of both the American economy and of the company.
Given all of the headwinds discussed, does that mean that Rivian is doomed to fail? Probably not. But, Rivian is one of thousands of unprofitable growth companies that have seen their valuations re-rated in the last few months, many of which have seen haircuts of 80% or higher.
Stocks like Peloton, Plug Power & Rivian are long-term winners.
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.
Rivian's stock tanked by almost 20% and hit a new low on Monday as the company's IPO lockup period ended, giving some early investors—including Ford, according to reports—their first chance to sell shares of the electric vehicle startup, which have cratered amid the wider market selloff so far this year.
Rivian's operating expenses rose 73% to over $1 billion, compared to $580 million in Q2 2021. In total, Rivian posted a net loss of $1.7 billion in the second quarter. This comes after the company announced a round of layoffs, cutting 6% of its workforce to cut costs and accelerate production.
Why Rivian stock is going up?
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.
Lucid has cut its 2022 production outlook to 12,000 to 14,000 units, down from its original plan to build 20,000 vehicles. Rivian, which launched late last year in one of the largest IPOs in U.S. history, said in May that it set a target to own more than 10% of the global market eventually.
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About RIVN.
| Symbol | Last Price | % Chg |
|---|---|---|
| RIVN | 38.54 | 3.05% |
Analyst Estimates for Rivian 2025
Overall, the Rivian stock price prediction for 2025 is $58.50.
Amazon owns about 17.7% of Rivian, while Ford owns 11.4%. Amazon was not expected to sell, Bloomberg reported.
Amazon invested in electric vehicle maker Rivian in 2019 as part of a plan to go green. During the first quarter, it saw nothing but red. In its earnings report on Thursday, Amazon took a $7.6 billion loss on its stake in Rivian.
Rivian says it has 71,000 pre-orders. If you multiply that by the average increase of $12,000, that amounts to over $850 million. That is $850 million the company can no longer plan on.
The R1T and soon R1S are amazing vehicles for a first try by Rivian. The build quality is there, the software is getting there. But most importantly, there isn't much else on the market that compares. GM, Ford, and eventually Ram and Tesla are building huge full-sized electric trucks.
With interest rates on the rise, investors have been rotating away from high-growth stocks and loss-making names, and this rotation is hurting Rivian badly, given that the company remains deeply unprofitable, with its cash burn for Q1 standing at over $1.4 billion as it invested in scaling up capacity.
If you are interested in buying a Rivian R1T truck, you will currently be put on a seemingly indefinite waitlist. However, if you are waiting to take possession of your R1T, an interesting workaround could get you behind the wheel of an R1T in the next six to eight weeks.
Is Rivian a good stock to buy 2022?
That will be bad news, as Rivian must report sustainable sales growth to convince investors it is a growth stock. And overall, growth stocks are out of favor in 2022 compared to value stocks. The electric vehicle maker has a huge problem — negative operating income, or EBIT.
LCID has an F grade for Value and Quality. The company's higher than industry valuation is consistent with the Value grade.
The Rivian IPO occurred on November 9 2021 on Nasdaq. The company priced 153 million shares at $78 a share to raise $11.9 billion for a valuation of some $66.5 billion.
Ford Motor, an early investor in Rivian Automotive, is selling some of its stake months after the electric-truck company went public.
The Large battery pack offers up to 314 miles of EPA-rated driving range in the R1T and 316 miles in the R1S. Those figures fall a good deal short of the 400-plus miles of range the Rivian claims the $10,000 Max battery pack will provide for either Rivian vehicle.
Amazon owns almost 163 million shares of Rivian, or about 18% of the stock outstanding. Rivian stock dropped from $50.24 at the end of the first quarter to $25.74 at the end of the second, resulting in a $3.9 billion pretax valuation loss on its Rivian holdings—and causing Amazon to report a net loss of $2 billion.
Rivian has sold about 6,600 electric pickup trucks since it started delivering vehicles a few quarters ago.
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.
Is Rivian a good company to work for? Rivian has an overall rating of 4.0 out of 5, based on over 610 reviews left anonymously by employees. 72% of employees would recommend working at Rivian to a friend and 68% have a positive outlook for the business.
Supply chain and production are ramping! We just announced production of 4,401 vehicles for Q2 bringing our cumulative total since start of production to 7,969 — keeping us on track to reach our year-end goals. Thank you to our team & suppliers.
How many Rivian trucks have been delivered?
July 6 (Reuters) - Rivian Automotive Inc (RIVN. O) delivered 4,467 vehicles in the second quarter, nearly four times more than the preceding quarter, as the electric-vehicle maker benefited from a ramp-up in production and strong demand.
Gallery: 2022 Rivian R1S First Drive
Rivian ended the second quarter of 2022 with the highest production output so far of 4,401 vehicles, bringing its cumulative total since the start of production to 7,969 vehicles. The company delivered 4,467 vehicles in Q2 compared with just 1,227 in the previous quarter.
Ford stock raced higher in 2021 and into the new year, but retreated sharply during the recent market correction. Bottom line: Ford stock is not a buy now.
Tesla Stock Not A Buy Despite 42% Revenue Growth.
“Since its IPO in late 2021 the Rivian story has been a bad episode out of the Twilight Zone for the Street,” wrote Ives in a Friday report.” Supply-chain problems, price increases, price cuts, weak guidance are all factors the stock is stuck in the Zone, says Ives.
Rivian ended its first day as a public company valued at almost $88 billion, more than tripling its last private valuation. However, shortly after, its stock crashed following the announcement that it no longer planned to co-develop an EV with Ford. Ford had invested $500 million in Rivian in May.
One key to profitability is manufacturing at volumes that will cover fixed costs. So when EV maker Rivian Automotive (RIVN -0.13%) told investors in its March report for fourth-quarter 2021 results that it was reducing production guidance, investors fled.
Rivian reported a $1.6 billion net loss in the first quarter on revenues of $95 million. The company said it expects supply-chain issues to ease later this year. Its market cap is now just over $27 billion, with shares around $30.
