Rivian Automotive was pitched as a great ramp up on EV production stock for years. The hype around Rivian Automotive was stuff of legend. This was suppose to be the next Tesla stock as the company ramped up production in 2023. The reality has not matched the hype.
The Wall Street Journal noted that Rivian’s high production costs and complex assembly is causing the company to lose over $30K on every vehicle that it sells! How is Rivian still in business? Source: https://www.wsj.com/business/autos/rivian-ev-truck-electric-vehicle-8e8dc124
Rivian is losing more than $1 billion in cash every quarter, despite recent cost-cutting initiatives. The business will need to simultaneously cut costs, ramp up production, and probably raise vehicle prices in order to stop the bleeding and reach a gross profitIn the world of finance and accounting, the term "gross profit" holds significant importance as it provides a fundamental snapshot of a company's financial health. Also known as gr... More, a milestone that RIVN believes it can reach by the end of the year. We are skeptical they can achieve this, in this high rates macro-environment.
Rivian Automotive deliveries continue to grow, says Canaccord
Canaccord maintained a Buy rating on Rivian Automotive with a $44 price target on October 2, 2023, after the company reported Q3 deliveries of 15,000, which were higher than the Street’s projection of 14,000 vehicles but lower than Canaccord’s expectations of 18,000 units. Canaccord is still of the opinion that Rivian is close to securing its just proportion of the future market for electric vehicles. Canaccord claims that while its deliveries are growing, sequential improvements are accelerating.
Rivian Automotive delivers 15,564 vehicles in Q3
On October 2, 2023, Rivian Automotive announced production totals for the quarter ending September 30, 2023. Rivian Automotive produced 16,304 vehicles at its manufacturing facility in Normal, Illinois and delivered 15,564 vehicles during the same period. These figures remain in line with the company’s expectations, and it believes it is on track to deliver on the 52,000 annual production guidance previously provided.
Rivian Automotive is an American electric vehicle (EV) manufacturer and automotive technology company. It specializes in developing and producing all-electric sport utility vehicles (SUVs) and pickup trucks. The company aims to offer sustainable transportation solutions to reduce the world’s reliance on traditional fossil fuel vehicles. Rivian’s vehicles are designed to be capable off-road and provide high performance, while also being environmentally friendly with zero-emission electric powertrains. Additionally, Rivian has emphasized the development of advanced autonomous driving technologies and aims to integrate them into their vehicles in the future.
A Tour of the Rivian Plant | Go behind the scenes with founder RJ Scaringe
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