The stock remains unchanged for the year. The Crowd rating on the stock is set at a Strong Buy.
RIVN Stock Forecast & Price:
Rivian stock forecast has the average analyst target price at USD 49.37 over the next 12 months by 18 analysts. RIVN consensus analyst rating is set at a Buy. Stock Target Advisor analysis of Rivian’s shares is currently Bearish (1 good signal and 3 bad). Rivian stock price was USD 31.85 as of the market close. Rivian stock price has changed by -4.87% over this week and is down 6.19% over the month. The stock remains unchanged for the year. The Crowd rating on the stock is set at a Strong Buy.
Earnings Release and Impact
Rivian, the EV manufacturer, released its quarterly earnings. It confirms the company’s output target. The company’s shares are up after reporting better results than estimates. The company’s net loss has reduced. The company reported a loss of $1.2 billion, against $1.7 billion from last year. Rivian reported a loss of $5 billion over the last 9 months of business.
They started producing trucks in October 2021. They claimed third-quarter revenue of $536 million and built 7,363 automobiles. The previous quarter reported 4,400 automobiles and $364 million in revenue.
The company had $13.8 billion in cash at the conclusion of the third quarter. They used $1.7 billion of it during the third quarter. This gave them cash to cover operations through 2025, which resonated with investors.
Rivian reported revenue of $536 million for the quarter. It fell short of estimates of $561.1 million. The company reported an adjusted EPS loss of $1.57 per share, which was better than the forecasted loss of $1.86 per share.
Rivian Expansion Plans
Rivian updated its expansion to $1.750 billion due to its “streamlined product roadmap”. It affirmed its $5.4 billion adjusted EBITDA deficit for the current fiscal year.
They lowered its forecast for capital investments in 2022. They shifted some planned spending to 2023. It now anticipates its full-year capital expenditures to total roughly $1.75 billion. This is down from the $2 billion it had set following the second quarter.
According to the guidance it provided in August, the company continues to expect that its:
for the entire year will total $5.4 billion.
Rivian had $13.8 billion in cash on hand as of September 30, which is a decrease from $15.5 billion as of June 30.
Rivian Supply Chain Issues
The company reiterates that its supply chain is still facing disruptions. Yet, the company is taking action to cut costs and delay cost outlays on new products.
Rivian Product Launch and Demand
The company confirmed the launch of its smaller vehicle platform, known as R2. It is set for production in 2026, delayed by a year. The R2 platform is set to produce in a brand-new manufacturing facility in Georgia.
Rivian’s R1-series trucks and SUV orders have increased from 98,000 as of August 11 to over 114,000. This figure is on top of the 100,000 electric delivery vehicles for the Amazon delivery fleet.
On October 3, Rivian reported that it built 7,363 automobiles in the third quarter and gave 6,584 of them to clients. Through the third quarter of the year, Rivian produced 14,317 automobiles.
EV Automakers Issues
On Wednesday the company changed the delivery mode. It has switched from transporting vehicles by truck to rail. This is due to the manufacturing output increase.
The main problem facing the company right now are:
Raising production levels enough to fulfil the demand for its vehicles,
Pay for their production costs, and generate a profit.
The ongoing global shortage of:
have plagued other automakers. It’s an issue the company needs to address to achieve its production levels going forward.
The company has added a second shift to its Normal, Illinois production facility. It will help assist its goal of producing around 25,000 vehicles by the end of the year.
Positive Fundamental Analysis for Rivian Stock:
High market capitalization:
The company is the largest entity in its industry which make the stock more stable and reliable.
The company scores very low on its debt-to-equity ratio and gets leveraged. Sometimes this happens as it’s trying to grow aggressively.
Negative cash flow:
Rivian stock had a negative total cash flow in the latest four quarters.
Negative free cash flow:
Rivian had negative total free cash flow in the last four quarters.