Rivian (RIVN) Launches R2 SUVs Amid 36% Stock Surge Over Year
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Significant Revenue Growth: Rivian's Q3 revenue surged 78% year-over-year to approximately $1.56 billion, indicating the company's growth potential in the EV market, despite facing major profitability challenges.
- Gross Profit Improvement: The company posted a gross profit of $24 million in Q3, an improvement of $416 million from the prior year, marking a significant step towards profitability, although automotive gross profit remains negative at $130 million, reflecting ongoing cost pressures.
- Delivery Volume Fluctuations: Rivian delivered 13,201 vehicles in Q3, but only 9,745 in Q4, indicating seasonal delivery fluctuations and failing to surpass the peak delivery of 15,564 units in Q3 2023.
- R2 SUV Launch Prospects: The upcoming R2 SUVs are expected to launch in the first half of this year at a starting price of around $60,000, although their lower price point may impact gross margins, they could help expand the customer base and market share.
Analyst Views on RIVN
Wall Street analysts forecast RIVN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for RIVN is 13.98 USD with a low forecast of 7.55 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
5 Buy
8 Hold
5 Sell
Hold
Current: 17.060
Low
7.55
Averages
13.98
High
25.00
Current: 17.060
Low
7.55
Averages
13.98
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.
