Core Insights - Rivian Automotive and Lucid Group are facing increasing challenges as they attempt to convince investors of a profitable future amidst difficult market conditions [1][2][3] Company Performance - Both companies are expected to report significant revenue growth and reduced adjusted earnings losses in their upcoming third-quarter results, driven by record U.S. EV sales [2][12] - Rivian delivered 13,201 vehicles in Q3, a 32% increase year-over-year, while Lucid delivered 4,078 units, up 47% from 2,781 units in Q3 2024 [12] - Rivian anticipates an adjusted EPS loss of 72 cents on revenue of $1.5 billion, compared to a loss of 99 cents on revenue of $874 million a year earlier [13] - Lucid is expected to report a $2.27 adjusted EPS loss, down from $2.80 a year earlier, with revenue projected to increase by approximately 90% to $379.1 million [15] Market Challenges - Both companies have reduced vehicle production guidance due to challenging market conditions, including increased costs from tariffs and a slowdown in EV sales forecasts [3][4] - The elimination of federal EV purchase incentives, which previously provided up to $7,500, is expected to negatively impact sales and profits [4][8] - Rivian has cut its expected earnings from credit sales from $300 million to $160 million, leading to a lowered gross profit guidance for the year [5] Future Growth Opportunities - Rivian's future relies heavily on the upcoming "R2" vehicle, expected to launch in the first half of next year, which aims to reduce production costs and complexity [19][20] - Lucid is focusing on the launch of its Gravity SUV and a future midsize vehicle platform to expand its market reach [24][25] - Both companies are promoting their technological advancements, including Rivian's $5.8 billion deal with Volkswagen for software and electrical architecture, and Lucid's partnership with Uber for deploying Gravity SUVs equipped with autonomous technology [23][26] Financial Outlook - Rivian is expected to report a gross loss of $39 million in Q3, while Lucid's gross loss is projected at $255 million [16] - Analysts are closely monitoring gross profit improvements as a key indicator of future profitability for both companies [15][16]

Core Viewpoint - Rivian is set to report its third quarter earnings, focusing on its path to profitability amidst challenges such as the loss of federal electric vehicle tax credits [1] Financial Performance - For the third quarter, Rivian is expected to report revenue of $1.49 billion, which is relatively unchanged from the previous year [2] - The company is projected to post an adjusted loss per share of $0.71 and an adjusted EBITDA loss of $570.7 million [2] - Last quarter, Rivian did not report a gross profit, marking a setback after two consecutive quarters of gross profit [3] - The full-year loss projection has been widened, with adjusted 2025 full-year EBITDA loss now estimated between $2 billion and $2.25 billion, up from a previous range of $1.7 billion to $1.9 billion [3] Production and Delivery - In Q3, Rivian produced 10,720 vehicles and delivered 13,201 vehicles, aligning with expectations for a strong quarter [3] - The delivery guidance for 2025 has been narrowed to a range of 41,500 to 43,500 vehicles, down from a prior range of 40,000 to 46,000 vehicles [3] - The original delivery target for 2025 was between 46,000 and 51,000 vehicles [3] Product Development - The upcoming R2 midsize crossover is crucial for boosting Rivian's sales, with a planned release in 2026 [4] Stock Performance - Rivian's stock has experienced volatility, currently down 4% year to date [5]

Core Viewpoint - Rivian Automotive's shares experienced a decline of 1.57% over the last five trading sessions following a prior increase of 2.70% in the preceding five sessions [1] Summary by Category - **Stock Performance** - Rivian Automotive's shares lost 1.57% in the last five trading days [1] - This decline followed a gain of 2.70% in the five trading days before the recent drop [1]

Core Viewpoint - Rivian Automotive is expected to report significant revenue growth in its upcoming third-quarter financial results, driven by strong demand and the upcoming launch of its R2 vehicle [1][2]. Financial Performance - Analysts estimate Rivian's third-quarter revenue to be $1.50 billion, a 71% increase from $874 million in the same quarter last year [2]. - The company is projected to report a loss of 72 cents per share, an improvement from a loss of 99 cents per share in the previous year [3]. Delivery and Demand Insights - Rivian reported third-quarter deliveries of 13,200 vehicles, marking a 32% year-over-year increase, surpassing consensus estimates of 12,700 units but falling short of Goldman Sachs' estimate of 13,950 [5]. - The growth in deliveries was attributed to strong demand related to the expiration of the federal EV tax credit [4]. Market Dynamics and Future Outlook - The expiration of the federal tax credit is expected to pose challenges for the EV market, potentially leading to a "double-digit percent headwind" for the sector [5]. - Rivian has slightly lowered its full-year delivery guidance to a midpoint of 42,500 vehicles, aligning with Goldman Sachs' estimate and slightly above consensus estimates [6]. Key Items to Watch - Analysts suggest monitoring Rivian's increased volumes, margins, vertical integration, cash burn, and supply chain dynamics [7]. - The upcoming R2 vehicle launch is seen as crucial for Rivian's future growth, with consumer deliveries expected to begin in the first half of 2026 [8][10]. Analyst Ratings and Price Targets - Recent analyst ratings include JPMorgan maintaining an Underweight rating with a price target increase from $9 to $10, Mizuho downgrading from Neutral to Underperform with a target of $10, and UBS maintaining a Neutral rating with a target increase from $12 to $13 [9]. Stock Performance - Rivian's stock is currently down 2.43% to $13.24, with a year-to-date decline of 0.45% [12].

Core Viewpoint - Rivian's stock is currently valued at approximately $13 per share, but if it were valued similarly to Tesla, it could be trading at $70.49, indicating a significant potential upside for investors [1]. Valuation Comparison - Rivian stock is trading at a notable discount compared to Tesla and Lucid Group, highlighting a consistent undervaluation in the market [2]. - The forward price-to-sales ratios suggest that Rivian's stock could exceed $70 if it matched Tesla's valuation metrics, yet it remains below $15 [3]. Competitive Advantages - Tesla's market cap of $1.4 trillion provides a substantial capital advantage, allowing it to raise significant funds with minimal shareholder dilution, which is crucial in the capital-intensive EV industry [4]. - Tesla's emerging reputation as a leader in artificial intelligence, particularly in the robotaxi market, further enhances its competitive edge [5]. Rivian's Growth Potential - Rivian is expected to introduce three new models (R2, R3, and R3X) early next year, all priced under $50,000, which aligns with consumer preferences and could position Rivian as a strong competitor in the affordable EV segment [8]. - The upcoming year is anticipated to boost Rivian's growth and focus on AI initiatives, potentially enhancing its market position [9].

Group 1 - Rivian Automotive, Inc. (NASDAQ:RIVN) is advised to be sold by Jim Cramer, who emphasizes that the stock is not a good investment at this time [1] - Cramer highlights concerns regarding Rivian's significant spending on its factory and suggests that a potential economic slowdown could lead to lower stock prices in the future [1] - The article suggests that while Rivian has potential, certain AI stocks may offer better upside potential and lower downside risk [1] Group 2 - Rivian manufactures electric vehicles and provides related software, charging, and maintenance services [1]

Core Insights - Rivian Automotive Inc. (NASDAQ: RIVN) shares have increased by 4.6% over the past week, indicating a slight underperformance compared to the Nasdaq index [1] Company Summary - Rivian's stock performance reflects a modest gain of 4.6% in the last week [1] - The company's recent share price movement suggests it is not keeping pace with the broader Nasdaq market [1] Industry Context - The performance of Rivian's shares may indicate broader trends within the electric vehicle sector, particularly in relation to market dynamics and investor sentiment [1]

Market Overview - US stocks experienced mixed results last week, with the S&P 500 and Nasdaq Composite rising slightly over 1.6%, while the Dow increased by 2% [2] - Both the DJIA and S&P 500 reached record levels on Friday, influenced by Q3 earnings season, dovish Federal Reserve commentary, and better-than-expected inflation data [2][12] Earnings Season Insights - The second week of Q3 earnings season showed mixed results, with initial strong performances from big banks followed by disappointing reports from regional banks and major tech companies [3] - High-profile disappointments included Tesla, which saw profits drop 37% year-over-year despite beating revenue expectations, leading to a 4% stock drop [4] - IBM reported better-than-expected earnings but showed slowing growth in its core cloud services, facing stiff competition from AWS, Microsoft Azure, and Google Cloud [4] - Netflix missed earnings estimates due to a tax dispute, despite having a successful film, resulting in a 5% stock decline [4] Positive Earnings Reports - Honeywell exceeded analyst expectations due to strength in its aerospace division, resulting in a 4% stock increase [5] - American Airlines reported better-than-expected results driven by travel demand and provided strong guidance for Q4 and the full year [5] - Intel reported strong earnings driven by AI chip demand, leading to a 3% stock gain for the week [5] - The blended EPS growth rate for the S&P 500 increased to 9.2%, up from 8.5% the previous week, marking the ninth consecutive quarter of growth [5] Job Market Trends - Initial jobless claims rose to approximately 227,000, indicating an upward trend in unemployment applications [6] - Major corporations announced workforce reductions, including Meta (600 layoffs), Rivian (over 600 layoffs), and Target (1,800 corporate jobs) [6] - GM laid off over 200 employees, while Amazon plans to replace over half a million jobs with robots in the next seven years [6][14] Upcoming Earnings Reports - The upcoming week is expected to be significant for the Q3 earnings season, with major companies like Microsoft, Meta, Alphabet, Apple, and Amazon reporting [7][8] - The "Magnificent 7" companies are anticipated to have a substantial impact on overall market growth, with expected YoY EPS growth of 14.9% compared to 6.7% for the rest of the S&P 500 [7] Conclusion - Despite mixed corporate earnings signals and layoff news, the market closed at record highs, driven by favorable inflation data [12] - The focus will shift back to corporate fundamentals as the "Magnificent 7" prepare to report, which will be crucial for sustaining market growth [12]

Core Insights - Rivian Automotive, Inc. (RIVN) is expected to report its third-quarter 2025 results on November 4, with a consensus estimate of a loss per share of 72 cents and revenues of $1.46 billion, indicating a year-over-year revenue growth of 66.6% [1][2][8] Financial Performance - The consensus estimate for Rivian's loss has narrowed by a penny in the past 30 days, suggesting improved expectations [1] - In Q2 2025, Rivian reported an adjusted loss per share of 80 cents, which was wider than the consensus estimate of 65 cents but narrower than the loss of $1.21 from the previous year [2] - Rivian's net sales in Q2 2025 reached $1.3 billion, exceeding the consensus estimate of $1.26 billion, and reflecting a 12.5% increase year-over-year [2] Vehicle Deliveries and Revenue Growth - In Q3 2025, Rivian delivered 13,201 vehicles, an increase from 10,018 units in the same quarter of 2024 [3] - The company's software and services revenues surged by 347% year-over-year to $376 million in Q2 2025, largely due to a joint venture with Volkswagen AG, which is expected to contribute to revenue growth in the coming years [3][4] Operating Expenses and Margins - Total operating expenses in Q2 2025 decreased to $908 million from $924 million in the same period last year, primarily due to reduced research and development expenses, a trend likely to continue in Q3 [4] Earnings Expectations - Rivian has a positive Earnings ESP of +10.44%, indicating a higher Most Accurate Estimate compared to the consensus, which increases the likelihood of an earnings beat [5][6] - The company currently holds a Zacks Rank of 3, suggesting a hold position [6]

Core Insights - Rivian Automotive's shares increased by 2.70% over the last five trading sessions after a previous decline of 1.21% in the five sessions before that [1] Company Performance - The recent performance indicates a recovery in Rivian's stock price following a slight downturn [1] - The fluctuation in share price suggests potential volatility in investor sentiment towards Rivian [1] Market Context - The movement in Rivian's shares may reflect broader market trends or specific developments within the electric vehicle sector [1] - The company's stock performance could be influenced by external factors such as competition, regulatory changes, or advancements in technology [1]