Rivian investor day focuses on cost reductions, efficiencies and next-generation EVs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 27 2024
0mins
Source: CNBC
Rivian Investor Event Highlights:
- Rivian Automotive's investor event focused on cost-cutting efforts, efficiency gains, and in-house technologies.
- Shares of the all-electric vehicle startup were down by 2% to 6% during the event despite recent share growth.
- The company reconfirmed its 2024 guidance for production and profitability goals.
- Rivian outlined long-term financial targets including gross margin, free cash flow, and adjusted profit margin.
- Efficiencies in product design and manufacturing were discussed, aiming for significant cost reductions.
Volkswagen Investment and Partnership:
- Volkswagen plans to invest $5 billion in Rivian by 2026 for electrical architecture and software technology.
- Rivian's software expertise will be utilized by Volkswagen for vehicles starting in the second half of the decade.
- The joint venture between Rivian and Volkswagen excludes battery technologies and autonomy systems.
- The capital from Volkswagen is expected to strengthen Rivian's balance sheet and support production ramp-up.
- Rivian aims to leverage the investment for growth and profitability with next-generation electric vehicles.
Analyst Views on RIVN
Wall Street analysts forecast RIVN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RIVN is 17.78 USD with a low forecast of 10.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
8 Buy
7 Hold
3 Sell
Moderate Buy
Current: 16.320
Low
10.00
Averages
17.78
High
25.00
Current: 16.320
Low
10.00
Averages
17.78
High
25.00
About RIVN
Rivian Automotive, Inc. is an automotive manufacturer, which is engaged in developing and building category-defining electric vehicles (EVs) and accessories, as well as software and services that address the entire lifecycle of the vehicle. 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, software subscriptions and FleetOS solutions. Its value-added 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.
