Important events
Nov 082023
RIVN: Rivian Stock Motors Up 4.5% on a Narrower Q3 Loss, Raised Guidance
The EV startup reported sales of $1.3bn in the third quarter, or a per-share loss of $1.19, sliding under the $1.31 projected loss.- Rivian stock (ticker: RIVN) is gearing up to open Wednesday trading higher by 4.5% after the delivery of another strong earnings report. According to third-quarter data, the company is growing at a better-than-expected pace and Wall Street is happy about it. Especially the narrower loss and prospects for emerging above the cash flow flatline.
- The EV startup picked up $1.3bn from sales after delivering 15,564 vehicles, up 24% from the second quarter. The upbeat number fueled some enthusiasm that led to the introduction of new guidance for the year – a total of 54,000 cars shipped to clients, up from 52,000 in the previous guidance.
- The highlight of the September-quarter financial data was that Rivian managed to narrow its loss and slip below expectations, prompting investors to turn up the buying activity. The company reported a per-share loss of $1.19, while Wall Street was looking for a $1.31 loss. Shares are floating sideways this year, but are down more than 86% from IPO.
Illustration by TradingView
Aug 092023
RIVN: Rivian Picks Up $1.1bn Revenue and Boosts Forecast. Investors Go Mild.
A narrower Q2 loss coupled with more units to roll off the assembly line didn’t help the stock move an inch.- EV startup Rivian beat second-quarter earnings estimates with a loss of $1.08 a share, against an expected $1.41 per-share loss. Overall, the company burned through $1.2bn for the quarter, compared with a $1.7bn cash incineration from a year ago.
- The good news: revenue surged to $1.1bn from $364mn in the year-ago quarter, in large part due to the delivery of roughly 12,640 cars. With some supply-chain issues clearing up, Rivian ramped up its 2023 production forecast by 2,000 to 52,000 cars. The company’s stock (ticker: RIVN) didn’t show any sign of life as the ticker stayed flat after the update.
- Rivian has long been revving up as a competitor to EV kingpin Tesla. But the field of electric-car companies is getting crowded as legacy automakers join the race for eco-friendly, zero-emission future. Throw in the mix fast-rising rivals from the East with China’s BYD forging ahead on a 400% year-over-year profit jump for the March quarter.
Illustration by TradingView
Jul 062023
RIVN: Rivian Stock Soars Over 45% in Five Days on Strong Deliveries, Robust Growth
The EV maker also announced its deal with Tesla to power its vehicles on the Supercharger network in the US from 2024.- US electric truck startup Rivian is flooring the gas pedal. The company’s second-quarter figures, released July 3, showed a consensus-beating 13,992 produced vehicles and 12,640 sold units. Solid growth has investors bewildered as Rivian’s production rate is up more than 200% year over year.
- The stock has gone nuts. Shares of Rivian (ticker: RIVN) are up a staggering 47% in the past five trading days. But short-term gains look tiny in the big picture. The company’s current market value of $19.5bn is ways away from the IPO valuation of $66bn in 2021.
- The just-released hot numbers, however, indicate Rivian is making big waves in the EV space. Over the weekend, EV kingpin Tesla (ticker: TSLA) announced a record quarter by deliveries with 466,000 cars shipped to clients. Tesla shares have been on a wild rally this year, bringing the company closer to the $1tn milestone.
Rivian
May 112023
RIVN: Reassuring Q1 Results Give Rivian Investors Hope
- Rivian’s Q1 results reassured investors by showing its loss to be lower than predicted.
- The EV maker says that it’s still on track to produce 50,000 electric vehicles this year.
- Rivian let go of 900 employees in February this year in an effort to cut back on costs.
Rivian has reported its Q1 results, which weren’t as negative as analysts were expecting. The Earnings for the American EV manufacturer were reported as a $1.25 loss per share in comparison to predictions of $1.59 per share. Its revenue also managed to beat analyst expectations, by reporting $661m against predictions of $652.1m – representing a substantial YoY increase from $95m.
The more impressive aspect of the report, however, was the fact that the company said that it's still on track to meet its target of producing 50,000 electric vehicles over the course of 2023. This represents more than double the number of vehicles the company produced in 2022 and is a positive sign for the scalability of Rivian’s manufacturing capacity.
The news initially caused RIVN to jump upwards by more than 10%, although it has since lost most of those gains taking its total movement yesterday to +1.8%. Rivian’s recent cost-cutting efforts (which included letting go of 900 employees in February) are also beginning to help improve the company’s position. It’s also continuing to work with Amazon to produce electric delivery vans for its operations, which could be another boon for the company this year.
(About Rivian)
Rivian is an American electric vehicle (EV) manufacturing company that specializes in producing electric trucks and SUVs. Founded in 2009 by Robert "R.J." Scaringe, Rivian has quickly gained recognition for its sustainable transportation solutions and its commitment to developing high-performance electric vehicles with off-road capabilities. The company is headquartered in Irvine, California, with additional facilities in Plymouth, Michigan, and Normal, Illinois. Rivian has attracted attention and investment from prominent companies such as Amazon and Ford.
Wes Hicks / Unsplash
Apr 042023
RIVN: Rivian Misses on Production Estimates Amid Economic Uncertainty
- Rivian has released its Q1 vehicle production targets, missing analyst expectations.
- The American EV manufacturer has been suffering from macroeconomic headwinds and supply chain issues.
- Even Tesla sales growth has been slowing, despite posting a record quarter this week.
While Tesla announced it topped vehicle deliveries in a record quarter for the company, some EV competitors aren’t having as much fun. EV prices are being slashed as macroeconomic factors put pressure on the profitability of automakers in the space. Ford announced last month that it made a loss of $2.1bn in 2022 in its electric vehicle unit, but made it for the loss with non-EV units. As a full fledged EV manufacturer however, Rivian has a full stake in the industry and is perhaps a better indicator of its health. Let’s take a look.
What has Rivian reported?
In its first quarter this year, Rivian stated that it manufactured roughly 9.4k vehicles, which marked a 6% drop from the quarter prior, which analysts have described as disappointing. Its deliveries had suffered a 1% decline from its last quarter. In part, the downturn has been caused by disruptions to its supply chain as the company seeks to adopt new battery technologies for its vehicles.
Despite the dip however, the American company led by CEO RJ Scarringe, has reaffirmed its production target for the year of 50k vehicles. So far, RIVN appears to have made it through the report mostly unscathed – still logging a 10% gain over the past week.
What’s next for the EV market?
As it stands, many EV companies are spending large amounts of cash in order to establish the production capability to become profitable. Even in the case of Tesla which posted a record quarter for production, growth in sales is struggling to impress due to inflation weighing on consumer spending habits. Investment in EV battery plants is also likely to continue to grow, and vehicle price cuts, first initiated by Tesla, could also continue to be mirrored in other companies across the space – as they have been with Ford’s EV unit.
Rivian
Mar 082023
Rivian Drifts Lower After Fundraising Haul Announcement
The company is seeking to raise $1.3bn even as it ended 2022 with $12bn on its balance sheet.- Electric truck startup Rivian Automotive is planning to sell $1.3bn in convertible notes in a private offering. The news was greeted by the Sell button and the stock fell roughly 15% in Tuesday’s session. Looks like investors prefer other types of convertibles.
- Rivian finished the year with $12bn on its balance sheet and investors are on edge because those convertible notes will mature in 2029. To purchase a convertible note is much like buying debt and a stock option all at once – you get the stock’s upside, but it can dilute company stakes if they turn into shares.
- The electric-vehicle maker is a big loser when it comes to share valuation. Rivian’s stock raised cash in a traditional IPO in 2021 to start public trading at a $66bn market value. Today, about 90% of that is missing as the company’s valuation is hanging at just under $14bn.
Smock Man / Flickr
Nov 102022
Steering in the right direction
In a market filled with disastrous earnings and plunging prices, EV maker Rivian offers a rare bright spot with its FY target.- Rivian defied the market downturn with a 7% jump in extended trading, though prices did lose 11% in day trading and are still down nearly 70% YTD. It came despite a Q3 miss on both ends, reporting widening losses per share of $1.57 on revenues of $536m. Though sales were a little light, confidence is everything, and Rivian seems to have it in spades.
- Investors were more focused on the brand’s production schedule, which offered a bullish outlook. While Rivian warned of worsening supply chains and higher costs thanks to inflation, it also reaffirmed its 25k-vehicle production target for 2022 and said it plans to dramatically cut costs to achieve that, lowering its guidance for capital expenditure.
- Others in the industry aren’t looking quite as steady. Lucid Group, for example, took a battering of nearly 17% on Wednesday to take prices to a fresh new low on the back of a Q3 loss and declining reservations. Similarly, Lordstown Motors reported a disastrous quarter, though its stock was partially buoyed by a deal with Foxconn.
Wes Hicks / Unsplash
Oct 112022
How to lose $2bn in one day
What’s the simplest way for an EV company to anger its consumers? Well, take away all of their EVs, of course.- Amazon-backed Rivian has had to recall over 12k vehicles, which is nearly every vehicle it’s ever sold, after the EV maker found a potential steering defect that needs to be re-checked – Rivian has only been delivering vehicles for about a year, so it’s not like they have a solid rep to fall back on here.
- Investors and consumers alike are naturally concerned about the safety of both their cars and their investments, and this news exacerbates fears that the brand won’t be able to meet its end-of-year production target of 25k. Tbf to them, much of the EV industry is in turmoil right now thanks to macro conditions, so they’re not alone.
- Rivian’s market cap lost over $2bn in one day on Monday to take its value to around $31bn, with shares falling over 11% at one point during intraday trading before closing down over 7% – the stock has now lost over 70% from its November 2021 IPO opening price, serving as a warning to those who think the EV market is easy to infiltrate.
Stephen Leonardi / Unsplash
Oct 042022
The EV edit
It’s the end of the month, and you know what that means… EV production numbers hit the market, and this time they’re rounding up quarterly progress as well.- Rivian popped 8% in premarket trading after the EV maker saw its highest quarterly production numbers in its history in Q3, saying on Monday that it made over 7,000 vehicles and remains on track to meet its annual production goal of 25k vehicles – which is a relief considering that goal is already only half of its previous commitment.
- Tesla wasn’t quite as lucky with its release. The EV leader missed former forecasts for the quarter despite reporting record delivery numbers, and saw its shares decline 8.61% for their worst day since mid-July and be one of the few tech stocks to close Monday in the red amid a bullish reversal in the market – even with all its new humanoid hype.
- There’s a new player on the EV scene that’s been garnering all sorts of attention. Chinese automaker BYD reported mega-impressive YoY sales growth for yet another month, having sold 161% more of its hybrid EVs in China than the same time last year as its momentum accelerates.
Vlad Tchompalov / Unsplash / Tesla
Aug 122022
Steering toward a solid production target
Rivian’s wheels are a lil bit stuck in the supply chain mud, but investors pull the stock out the red after seeing its target-meeting production plans.- Rivian shares lifted a moderate 3% in extended trading on Thursday after a successful day of trading that saw prices hit their highest level since mid-April. It came after reporting LPS of $1.62, which came in pretty much in line with estimates, on revenues that well outpaced expectations at $364m.
- The EV brand confirmed it’s on pace to make around 25k vehicles this year, on track to achieve the reduced guidance it provided in March and relieving investors who were nervous about another forecast cut. Rivian currently has around 98k preorders for its popular R1-series truck and SUV, up from 90k orders in May.
- However, Rivian also burned through $1.71bn in the quarter, which is especially scary for investors considering its much-lower revenues. Additionally, the company trimmed its FY outlook and said that investors should now expect a wider loss and lower capital expenditures on the way as Rivian struggles to navigate the supply crunch that’s still plaguing EV brands.
Rivian
Jul 072022
A Rivian reassurance
Rivian proves all the haters wrong as a production ramp-up sends it racing towards the completion of some ambitious goals.- Rivian confirmed it’s on track to hit its 2022 production target, which the EV maker lowered in March, from the 50k it promised in its IPO roadshow to a 25k goal as the company struggled with severe supply shortages.
- It’s ramped up production in a big way, and it's paying off. Rivian delivered 4,467 vehicles in the second quarter, nearly four times more than the quarter before, and output jumped 72% sequentially to produce 4,401 vehicles in the quarter.
- Rivian shares rallied over 10% on Wednesday as investors digested the good news to close just under $30, but shares are still down over 80% from their post-IPO high and Rivian has still only produced 6,954 cars YTD – so it’s got a ways to go.
Rivian
May 122022
Rivian races out of the doldrums
After hitting its lowest price ever on Wednesday, shares zoomed ahead after hours when earnings promised clearer roads ahead.- The stock jumped 7% in extended trading on Wednesday, a much needed boost after its 30% loss this week so far, after reporting a narrower loss than expected at $1.43 per share but missing fairly dramatically with revenues of $95m. Rivian is still in the getting-going stage though, so other metrics were in the spotlight.
- The Tesla rival now has over 90k reservations for its electric truck and SUV, up from 83k at the end of March, including 10k new orders since its March price hike (which caused quite the controversy). It may run into trouble filling those orders though, having lost a quarter of planned production since March due to a component shortage.
- But Rivian promised its FY production is on track nonetheless. The automaker maintained its 2022 production goal of 25k despite supply challenges – this goal is already half the production it promised in its IPO roadshow, so investors are pleased there’s been no take-backsies.
Rivian
May 102022
Rivian is losing its OG investors
Rivian’s post-IPO stock lock-up comes to the end of its road, and shares hit a new all-time low after big dog investors decide they’re gonna get out here and catch a ride elsewhere.- Shares lost over 20% of their value on Monday to hit their lowest closing price ever at $22.78, taking the stock down over 87% from its post-IPO highs in November last year and 78% lower than its IPO opening price of $106.
- Rivian’s biggest shareholders are dumping their stock. The reversal came after news hit that one of its most important corporate shareholders, Ford, is selling part of its 11.4% stake in the company – only 8m of its 100m shares, but it’s not a good sign and there could be more sales to come.
- Why now? The lock-up agreement that required pre-IPO investors to hold their shares for 180 days has just ended, and those companies who hold shares like Amazon and Ford have all reported double-digit dents to their earnings from their stake in the EV maker thanks to its drastic YTD declines.
Rivian
Apr 072022
Tough crowd
Rising EV star Rivian sees its shares shift down a gear despite its full-speed ahead production plans.- Rivian said on Tuesday that it’s on track to meet its 2022 production goal of 25,000 vehicles this year, a target that was slashed in half last month because of supply-chain constraints.
- The pledge came along with Q1 delivery numbers. Rivian made 2,533 cars this quarter and delivered 1,227 of those, slowly building up momentum after starting deliveries of its R1T pickup truck at the end of last year.
- Rivian’s production factory currently has a 150,000 annual production capacity, but the EV maker hopes to up that number to 200,000 by next year as it adds new vehicle designs to its line-ups. Will that be enough to keep the competitors at bay?
Rivian
Mar 112022
Rivian runs into a roadblock
Investors swiftly tug on the parking brake after seeing Rivian’s pot-hole ridden path ahead.🔍 Key points:
- The stock reversed over 13% in extended trading on Thursday to find a brand new all-time low after missing on both ends with LPS of $2.43 on revenues of $54m, and reporting a meager 909 vehicle deliveries in Q4 after ramping up production.
- Supply constraints are a speed bump to success. Rivian expects to make 25k electric trucks and SUVs this year, only half of the production it forecast to investors in its buzzy IPO last year, as it battles continued supply snags. It’s lost around $117bn market cap in the last four months because of concerns around its production capabilities.
- Things got worse when the automaker didn’t offer a FY forecast, leaving investors to wonder if profitability is a mirage on the horizon. The earnings came on the back of a tough week for Rivian, who had to roll back its decision to hike prices after severe consumer backlash.
LOGAN WEAVER / Unsplash
Mar 022022
Rivian stalls on inflation
Rivian reverses after the pressure of inflation gets to the EV specialist and its vehicle prices.Key points:
- Rivian has increased the prices of its vehicles by around 20% as a way to compensate for rising inflation and increasing component parts, sending its share prices down over 8% on Tuesday.
- As well as backlash from customers, Elon Musk threw shade at the company for making the move. The billionaire tweeted that Rivian’s "negative gross margin will be staggering", and said that building an affordable electric pickup truck is “near impossible” for other firms considering Tesla itself finds it difficult.
- A bearish analyst opinion didn’t help. Wells Fargo on Tuesday reiterated its Equal-weight rating on the stock and lowered its price rating from $110 to $70, citing “near-term headwinds” including rising rates, increased competition, tough production targets, and the end of its IPO lockup period in May.
Feb 152022
Soros fills his tank with Rivian
Rivian backers get given some hope from a big time investor that sees potential in the struggling stock.Key points:
- Prices jumped 10% in Monday morning trading before slowing its roll to close up nearly 7% at $62.65, though the stock is still only $12 from an all-time low.
- Billionaire investor George Soros made a big bet on Rivian last year with a $2bn investment into the EV start-up, even trimming his positions in big dogs like Amazon (AMZN) and Alphabet (GOOGL) to make space.
- But is it paying off yet? Rivian’s share drop has wiped $800m off that $2bn, but the investment was likely a long-term one and gave investors hope that their faith isn’t misplaced despite recent declines.
Heinrich-Böll-Stiftung / Flickr
Jan 282022
The Tesla effect leads to reversals
EV makers go into a deep reversal after Tesla (TSLA) grinds the EV earnings gear box.- Rivian lost 10% to hit its lowest close since its November IPO, Lucid (LCID) dropped 14% to a three-month low, XPeng (XPEV) sank 12%, and Lordstown (RIDE) and Nikola (NKLA) both lost 9%.
- What could cause such a sell-off? Well, Tesla’s earnings (impressive as they were) warned that their factories have been running below capacity for several quarters thanks to supply chain woes that’ll continue into 2022.
- "Other EV firms are not going to be able to produce these vehicles as fast as they want" if even Tesla is struggling, says Curzio Research CEO Frank Curzio, adding that he thinks investors will have to wait till 2023 before seeing volume growth in new models.
Tesla
Jan 112022
COO steps out the vehicle
Rivian stock deepens its mudslide after an exec steps down amid lowered production numbers.- Prices slipped 5.61% on Monday to a new closing low, now down nearly 19% from its IPO closing price and 55% from its post-IPO November highs.
- It manufactured 1,015 cars in 2021 and delivered 920, in line with the lowered guidance it offered last month after supply chain constraints left tire marks.
- Separately, it dropped off its COO Rod Copes after less than two years in the front seat. Copes made a staged exit to keep things running smoothly during the company’s supposed production ramp up.
Rivian
Jan 062022
Rivian gets run off the road
Rivian flirts with an all time low after its pal Amazon (AMZN) gets a new ride.- Prices tumbled 11% on Wednesday for its biggest daily drop since November, closing below its IPO price and coming within a few cents of its all time low.
- Amazon (AMZN) (a big Rivian backer) snubbed the automaker by ordering a bunch of electric vans from rival Stellantis (STLA). Amazon claims the collab “doesn't change anything” about its relationship with Rivian.
- The number of EV makers is growing every day. USA Truck (USAK) just picked competitor Nikola (NKLA) as its electric truck supplier, so Rivian better keep its foot to the floor if it wants to keep up.
Rivian