Rivian and Lucid Electric Vehicle Stocks Plummet
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy RIVN?
Source: Fool
- Production Shortfalls: Rivian promised to produce 50,000 vehicles in 2022 but only managed 24,337, resulting in an 80% drop from its IPO price, while Lucid produced just 7,180 of its planned 20,000, leading to a nearly 70% market value loss.
- Market Challenges: Both companies face supply chain constraints, production issues, and soaring costs, with Rivian's gross margin at -276.59% and Lucid's at -9280.51%, indicating severe financial health concerns.
- Future Outlook: Rivian expects its upcoming R2 SUV, priced lower than the R1T and R1S, to attract new customers with a delivery target of 62,000-67,000 vehicles in 2026; Lucid aims for 25,000-27,000 Gravity SUVs, though a recall of over 4,000 units may hinder production.
- Investment Risks: Despite analysts projecting revenue growth of threefold for Rivian and sixfold for Lucid from 2025 to 2028, both companies are likely to remain unprofitable and issue more shares for cash, indicating high investment risks.
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Analyst Views on RIVN
Wall Street analysts forecast RIVN stock price to rise
18 Analyst Rating
8 Buy
7 Hold
3 Sell
Moderate Buy
Current: 15.900
Low
10.00
Averages
17.78
High
25.00
Current: 15.900
Low
10.00
Averages
17.78
High
25.00
About RIVN
Rivian Automotive, Inc. is an automotive technology company, which is engaged in developing and manufacturing category-defining electric vehicles (EVs) as well as vertically integrated technologies and services. The Company's R1 platform consists of two vehicles: the R1T, a two-row five-passenger pickup truck, and the R1S, a three-row seven-passenger sport utility vehicle (SUV). In the commercial market, the Company offers a Rivian Commercial Vehicle (RCV) platform. The vehicle on this platform is the Electric Delivery Van (EDV), designed and engineered by Rivian in collaboration with Amazon. The Company also offers FleetOS, its proprietary, end-to-end centralized fleet management subscription platform. It also offers a variety of services, including vehicle repair and maintenance, financing, insurance, joint venture, software subscriptions, and vehicle accessories, among others. Its other services include vehicle electrical architecture and software development services, and more.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- New Partnership: Rivian has partnered with Redwood Materials, founded by Tesla co-founder JB Straubel, to deploy a battery energy storage system at its Normal, Illinois factory, initially providing 10 megawatt-hours of dispatchable energy to reduce costs and grid load during peak demand periods.
- Battery Recycling Utilization: Rivian will supply used EV battery packs to Redwood, which will integrate them into its energy system, enhancing battery lifespan and contributing to grid health, thereby bolstering American competitiveness in the clean energy sector.
- R2 SUV Production Preparation: As Rivian advances its energy storage initiatives, it is gearing up to start volume production of its smaller, more affordable R2 midsize SUV at the Normal plant, with an expected starting price of around $45,000 and deliveries slated for June 2026, aiming to compete with Tesla's Model Y.
- Market Reaction: Despite RIVN shares gaining 33% over the past 12 months, retail sentiment on Stocktwits remains bearish, indicating cautious market outlook regarding the company's future performance.
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- Energy Storage Collaboration: Rivian and Redwood Materials are collaborating to provide at least 10 megawatt hours of reliable power at Rivian's Normal, Illinois facility by reusing EV battery packs, significantly enhancing energy flexibility and reliability at the plant.
- Technology Integration: Rivian will supply used battery packs, which Redwood will integrate into an energy system supported by Redwood's pack manager technology, allowing stored energy to be utilized as needed, thereby improving production efficiency.
- Cost Benefits: The system is rapidly scalable and leverages safe, proven EV batteries, with Rivian stating that this initiative will significantly reduce costs and decrease reliance on imported energy storage while deferring billions in infrastructure upgrades.
- Market Performance: Rivian shares have risen for the fifth consecutive day, and the company reaffirmed its delivery guidance of 62,000 to 67,000 vehicles for 2026, indicating strong market confidence and growth potential.
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