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Rivian IPO: RIVN went public at $78 00 on Nov. 10, 2021

That’s almost half the current $74,900 R1S and $69,900 R1T starting price. It’s far from a guarantee that Rivian will benefit from the growth in the EV industry and come out on top. The next few years will be trying and a period where Rivian will have to prove if it’s a true contender or just another pretender. In 2023, Rivian produced more than 57,000 vehicles, its best year ever. Just three years ago, Rivian manufactured just over 1,000 vehicles.

RIVN Stock News Headlines

Harvard Business Review suggests that most buyers aren’t ready for all-electric vehicles. While early adopters were willing to take risks on the new technology, it may be years or even decades for most consumers to be comfortable making the switch. 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.

Rivian Automotive MarketRank™ Stock Analysis

The size of the IPO and the rapid rise in Rivian’s stock price reflects investors’ excitement about the EV market, especially for startups seeking to develop EVs that compete with traditional automakers. If the perfect storm unfolds in 2024 and there’s any hangover in 2025, Rivian’s position could very well be worse three years from now than it is today. Thanks to this rise in production, Rivian has started to narrow its losses. Based on the most recent earnings report, the estimated per-vehicle loss is around $30,000. While not yet profitable, there is clear and commendable progress being made in terms of generating revenue, which is also at an all-time high.

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The ABR is the calculated average of the actual recommendations (strong buy, hold, sell etc) made by the brokerage firms for a given stock. Rivian’s IPO raised nearly $12 billion, making it the largest IPO in the U.S. since 2014. The stock xm broker review was up more than 21% from its initial opening price to the close of trading on Nov. 12, 2021, three trading days after the IPO. The broader U.S. equity market, as measured by the S&P 500, was basically flat over the same period.

Rivian Automotive Inc. shares closed at a fresh record low on Thursday, with the competitive landscape for electric trucks set to get even hotter after Ford Motor Co. said it will cut prices. NEW YORK , April 25, 2024 /PRNewswire/ — Attorney Advertising — Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed ag… Rivian’s stock has faced multiple challenges during its short history on the public markets. In late 2021 the company’s market cap of over $100 billion put it ahead of major automakers like General Motors and Ford Motor Company despite having little production volume or revenue. Unsurprisingly, that absurd situation wasn’t going to last forever. Rivian’s total book value, the difference between its assets and liabilities, was $5.5 billion as of June 30, 2021.

The company is scheduled to release its next quarterly earnings announcement on Tuesday, May 7th 2024. Sign-up to receive the latest news and ratings for Rivian Automotive and its competitors with MarketBeat’s https://broker-review.org/ FREE daily newsletter. The Rivian R1S began production in 2022 and began deliveries later that year. The R1S comes with a 260 to 320-mile range and can also wade through 3 feet of water.

At 4,715 mm long, 1,700 mm tall, with a wheelbase of 2,935, the R2 is undoubtedly smaller than the current R1S ( 5,100 mm x L, 1,873 mm x H, 3,075 x wheelbase). Despite its smaller size and lower price, Rivian insists the R2 will keep the brand’s essence. Rivian unveiled the R2 last month, with starting prices around $45,000.

Ford, which has been focusing on expanding sales of EVs and has a nearly 12% stake in Rivian, saw its shares fall about 1% over the roughly three days of trading. The company designs, develops, manufactures, and sells electric adventure vehicles and accessories through direct sales to consumers and commercial markets. The company vehicles are designed for sustainability and long lifespans across all components with repairability and reusability key to the end result. 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. Rivian wants to shake up the industry with its next-generation R2 electric vehicle.

1. While production is up, costs have cut into any chance of turning a profit.
2. “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.
3. Based on the most recent earnings report, the estimated per-vehicle loss is around $30,000.
4. Insiders that own company stock include Claire Mcdonough, Jay T Flatley, Jeff Baker, Jiten Behl, Kjell Gruner, Motor Co Ford, Robert J Scaringe and Rose M Marcario.
5. The R1S comes with a 260 to 320-mile range and can also wade through 3 feet of water.

The company said that these deliveries generated estimated revenue of between $0 and $1 million for the three-month period ended Sept. 30, 2021. The company has been able to finance its operations primarily through the sale of securities and from borrowing. Shares of EV-maker Tesla, the most valuable automobile company in the world, fell nearly 3% during the same period, between the debut of Rivian’s shares and close of trading on Friday. While both companies operate within the market for EVs, Rivian’s niche is all-terrain vehicles whereas Tesla’s specialty is sedans and SUVs.

Rivian Automotive, Inc. is an OEM EV manufacturer focused on pickup trucks and SUVs. The company was founded in 2009 and is based in San Jose, California. Rivian is among the greenest of the EV makers choosing to achieve carbon neutrality well ahead of the Paris Climate Accord timeline.

Rivian made a “conscious decision to make it feel like a smaller R1S,” according to Hammoud. To keep the brand essence, Hammoud said the company picked the key design elements to ensure R2 is recognizable. According to Rivian’s design chief, Jeff Hammoud, the R2’s lower price point was one of the biggest challenges. 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.

Since 1988 it has more than doubled the S&P 500 with an average gain of +24.20% per year. These returns cover a period from January 1, 1988 through April 1, 2024. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return.

Few other companies (let alone automakers) made as big of a public debut as Rivian (RIVN 6.10%). Raising more than $12 billion in 2021, Rivian’s IPO was the largest of any American company since Meta Platforms in 2014. That hesitation is showing up in Rivian’s production and delivery expectations for 2024. The company said its backlog of orders had shrunk, partially due to fulfillment, but also due to cancellations and fewer new orders.

While production is up, costs have cut into any chance of turning a profit. “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. “Rivian’s fairly bleak 2024 guidance, including no volume growth and continued steep losses, in our view, showcases the company’s deep challenges ahead,” Rosner wrote.

For starters, interest rates seem unlikely to stay this high forever. Rivian also has intangible value related to its brand and quality (its R1T pickup truck is rated 10/10 by Car & Driver). This could make it more resilient than its financial statements suggest.

Down by 89% from its initial public offering price of $78 in November 2021, Rivian Automotive’s (RIVN 6.10%) stock performance has been catastrophic for its early investors. While the electric vehicle (EV) maker has quickly built a leading brand with its trucks and SUVs, market weakness has soured investor interest in this once-exciting industry. The company, which is not yet profitable, reported a net loss of $1.52 billion for the three-month period that ended Dec. 31, compared with $1.72 billion during the same period a year earlier. Much rides on the company’s plan to produce its more affordable R2, which will debut in March, but won’t start mass production until 2026. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system.

Despite years of growth in EV sales, mass-market customers remain wary of EV battery life, range and the availability of reliable charging stations. That’s why hybrid vehicle sales have grown alongside those of EVs, Caldwell said. The current ABR compares to an ABR of 2.13 a month ago based on 23 recommendations. Rivian faces a wide range of competitors both in the broader automobile industry and in the small, but fast growing EV segment.

Rivian estimates that its net loss for the recent quarterly period was between $1.2 billion and $1.3 billion. Those quarterly losses were more than four times larger than the same quarter a year earlier. 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. Rivian’s Q4 earnings report is scheduled to be released on Feb. 21, which should provide a clearer picture of its future. While Rivian is in an undeniably terrible situation, I think there is light at the end of the tunnel.

With just $7.8 billion in cash and equivalents, Rivian may need to rely on outside sources of capital, such as bond issuance or equity dilution, to fund its operations. And this could hurt the stock by reducing current investors’ claims on potential future earnings. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security.

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. Best of all, several catalysts are currently in the works that could help push Rivian into the green. But since 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.

24 Wall Street analysts have issued twelve-month price objectives for Rivian Automotive’s shares. On average, they expect the company’s stock price to reach $19.61 in the next year. This suggests a possible upside of 116.9% from the stock’s current price. View analysts price targets for RIVN or view top-rated stocks among Wall Street analysts. Despite industry weakness, Rivian’s 2023 revenue soared 167% to $4.43 billion with a ramp-up in sales of its all-electric trucks and SUVs.

That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. The scores are based on the trading styles of Value, Growth, and Momentum. There’s also a VGM Score (‘V’ for Value, ‘G’ for Growth and ‘M’ for Momentum), which combines the weighted average of the individual style scores into one score. 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. The company is planning to launch at least 2500 stations nationwide.

Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. Rivian Automotive Inc. (RIVN) designs and manufactures electric vehicles (EVs) and accessories and offers related services. The company produces and has begun delivery of its first-generation consumer vehicle, which is a two-row, five-passenger pickup truck named the R1T.

Most importantly, the much-hyped electric vehicle (EV) industry is not meeting analysts’ optimistic projections. Based on short-term price targets offered by 23 analysts, the average price target for Rivian Automotive comes to $18.00. The average price target represents an increase of 111.27% from the last closing price of $8.52. According to 23 analysts, the average rating for RIVN stock is “Buy.” The 12-month stock price forecast is $17.91, which is an increase of 98.12% from the latest price.

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. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Zacks provides the average brokerage recommendation (ABR) for thousands of stocks for most of the leading investment web sties.

Starting at around $45,000, the R2 is expected to open up a new market of buyers. How does Rivian plan to keep its rugged luxury feel at a lower price? The company attributed the lower expectations for 2024 to “economic and geopolitical uncertainties,” and highlighted the effect of higher interest rates on new car loans. Rivian said it would continue its “company-wide cost transformation program,” which it said helped reduce the price for the company’s electric pickup truck, SUV and delivery van. More recently, Rivian’s problems have had more to do with macroeconomic factors largely outside its control. High interest rates mean consumers are less likely to spend money on big-ticket items like cars — especially while inflation eats into their spending power.

Later this year it plans to begin delivering a three-row, seven-passenger SUV named the R1S. These vehicles are equipped with a set of advanced technology systems and are designed to accommodate consumers with active lifestyles. Rivian also plans to launch an electric delivery van (EDV) for business customers.

24 Wall Street analysts have issued “buy,” “hold,” and “sell” ratings for Rivian Automotive in the last twelve months. There are currently 1 sell rating, https://forex-reviews.org/binance-review/ 10 hold ratings and 13 buy ratings for the stock. The consensus among Wall Street analysts is that investors should “moderate buy” RIVN shares.

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). Rivian also faces competition from China-based EV makers like NIO Inc. (NIO) and BYD Auto, a subsidiary of BYD Co. Rivian said that it expects to generate most of its revenue in the near term from sales of vehicles, accessories, and regulatory credits. Gradually, it will then begin to generate more substantial revenue from offering value-added services spanning the lifecycle of its vehicles, which will deepen its relationship with customers.

Rivian’s inability to generate income has forced it to utilize its cash position to sustain operations. Fortunately, its massive IPO helped bolster reserves, but in a matter of three years, its total cash position has been reduced by more than 60%. 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.

In regard to its capabilities, the truck can go from 0 to 60 in 3 seconds, tow up to 11,000 pounds, and wade through 3 feet of water with no problems. The company offers five-passenger pickup trucks and sports utility vehicles under the R1T and R1S labels. The R1T is a highly configurable pickup while the R1S is an off-road capable SUV.

Rivian plans to start R2 production in the first half of 2026 at its Normal, IL plant. New upgrades will enable Rivian to build up to 215,000 vehicles annually, up from 150,000 previously, while slashing costs. 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.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. Not only does the R2 have its own unique design, but it also includes an abundance of fun accessories like a revamped camp kitchen, tent, and bike rack to upgrade any adventure. With R1, Rivian was able to include the cool features and design because “we weren’t that restricted on price point,” Hammoud said.