Stock Crashes on Earnings
Rivian Automotive Inc, an electric vehicle (EV) maker, has reported mixed Q4 results and a production forecast that missed analyst expectations. The company’s new production forecast for 2023 is 50,000 vehicles, below analyst estimates of around 63,000 units, resulting in a decline of 18.32% in its stock price. Additionally, Rivian is projecting a 2023 adjusted EBITDA loss of $4.3 billion, which is slightly more than the estimated $4.19 billion.
Rivian faced supply chain and parts issues in Q4 and encountered multiple days of lost production due to supplier shortages. These issues are expected to persist into 2023, although the company expects better predictability than what was experienced in 2022. Rivian reported a $1.72 billion net loss for the quarter, which is slightly better than estimates. For 2022, the company reported an adjusted EBITDA loss of $5.22 billion, below its forecast of $5.45 billion for the year.
The company had 114,000 preorders for its R1T and R1S vehicles at the end of the third quarter, but it will no longer be issuing pre-order data going forward. Analysts are concerned about the effect of the softer macro backdrop and delivery delays on consumer orders, and if there is a tangible churn rate in this area.
However, Rivian did offer some positive news to its reservation holders, projecting that its Max Pack battery variants will be available for both the R1T pickup and R1S SUV starting in the fall of 2023. The Max Pack increases the range of the R1T to 400 miles and the R1S to 390 miles. Rivian also reported that it had cash on hand and reserves of $12.01 billion, and it expects capital expenditures to reach $2 billion in 2023, including investments in its upcoming Georgia facility.
RIVN Stock Price Forecast & Analysis
According to the average analyst target price for Rivian Automotive Inc over the next 12 months, the stock is expected to reach USD 37.42. The average analyst rating for Rivian Automotive Inc is Strong Buy, which suggests that analysts are optimistic about the company’s future performance.
Stock Target Advisor’s own stock analysis of Rivian Automotive Inc is Neutral, based on 2 positive signals and 2 negative signals. It’s important to note that this analysis may differ from the average analyst rating and target price, as different analysts and platforms use different methodologies to evaluate stocks.
Rivian Automotive Inc’s stock price closed at USD 19.30 recently, showing an increase of +1.15% over the past week, but a decrease of -2.67% over the past month. However, over the last year, Rivian Automotive Inc’s stock price has dropped significantly by -71.43%.
As with any stock, stock price forecasts and analyst ratings are subject to change based on various factors such as company performance, market trends, and economic conditions. Therefore, investors should always conduct their own research and analysis before making investment decisions.