Can Rivian Compete in EV Market? Q4 Results Raise Concerns

Can Rivian Compete in EV Market? Q4 Results Raise Concerns

Rivian Automotive (RIVN: NSD) saw its stock plummet over 15% in after-hours trading on Wednesday following its release of Q4 2023 earnings. The company’s wider-than-expected loss and cautious outlook for 2024 dampened investor sentiment, triggering the sell-off.

 

Key Points from Rivian’s Q4 Report:

Here the key insights from Rivian’s Q4 Earnings Report

  • Wider Loss: Rivian reported a Q4 2023 adjusted loss per share of -$1.73, missing analyst expectations of -$1.61. This represented a significant increase from the -$1.42 loss per share in Q4 2022.
  • Revenue Beat: Despite the wider loss, Rivian did manage to beat revenue expectations, generating $1.32 billion compared to an estimated $1.26 billion.
  • Weak Guidance: The company’s outlook for 2024 fell short of analyst and investor hopes. Rivian expects to produce 50,000 vehicles in 2024, reiterating its previous guidance, but offered no concrete profitability timeline.

RIVN Ratings by Stock Target Advisor

Stock Target Advisor’s Analysis on Rivian:

According to Stock Target Advisor‘s analysis, Rivian’s outlook is Slightly Bearish, with a Sell rating and a Target Price of $20.62. This price target indicates a projected price drop of -34.02% over the next 12 months. This projection is in sharp contrast to the average analyst target price of $23.25, with an average analyst rating of Buy.

 

Future Outlook:  

Rivian’s Q4 2023 results and 2024 guidance raise questions about the company’s ability to achieve profitability in the near future.  The wider loss, coupled with the lack of clear path to profitability, fueled concerns about Rivian’s ability to compete in the increasingly crowded EV market.

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