Rivian (RIVN -2.60%) is a high risk stock that only more aggressive investors should be looking at. But, if you are looking at it, it might be worth jumping aboard before it releases fourth quarter 2024 and full year 2024 earnings on Feb. 20. Here's why the story in 2025 is likely to be more upbeat than the one that unfolded in 2024.What does Rivian do?Rivian is an electric vehicle (EV) maker with a focus on trucks. At this point it really makes two types of vehicles, a high-end consumer model and work truc ...

Over the past 12 months, Rivian (RIVN -2.53%) shares have been stuck under $20. That's a far cry from their all-time high of around $130. If you've been looking for a growth stock with significant upside potential, this could be your chance. However, there are two things in particular that you should know about before jumping in.This EV stock clearly has large upside potentialIt's not hard to see how Rivian shares could have immense upside. Shares of the EV maker trade at just 3.2 times sales, while other E ...

The next chapter of the electric vehicle story doesn't have to be all about Tesla again.There's no denying Tesla has been the centerpiece of the electric vehicle (EV) revolution to date. And rightfully so. It didn't just bring EVs into the mainstream. It made them cool. Patient shareholders have been well rewarded for riding out the stock's extreme volatility too.As time marches on, other EV players are entering the fray, providing new options to investors who fear Tesla stock's most rewarding days are in t ...

Core Viewpoint - Rivian has significant long-term growth potential despite its current stock price volatility and ongoing losses, with an important earnings report expected on February 20 that could impact its valuation [1][5]. Financial Performance - Since going public in 2021, Rivian's annual sales have increased from a few hundred million dollars to over $4.5 billion, yet it has incurred a gross loss of nearly $2 billion [2]. - Rivian has consistently generated gross losses over multiple years, raising concerns about its ability to achieve profitability, especially as it continues to lose money on every vehicle sold [3][4]. Future Plans - The company plans to launch three new vehicle models priced under $50,000 starting in 2026, which could significantly expand its sales base but will require substantial investments [4]. - Rivian's current valuation is low, trading at 3.2 times sales compared to competitors like Lucid Group and Tesla, which trade at 10 and 14 times sales, respectively [4]. Profitability Outlook - Rivian's management has expressed optimism about achieving gross profitability by the end of the fiscal year, with a recent narrowing of gross losses from $477 million to $392 million [6][8]. - The CEO has indicated a focus on driving toward profitability, with expectations of modest positive gross profit by the fourth quarter, which could dramatically improve the company's prospects [8][9].

Core Viewpoint - Rivian Automotive's stock has experienced significant volatility over the past year, influenced by both positive developments and challenges, with recent production and delivery numbers providing a bullish outlook for investors [1][2]. Group 1: Production and Delivery Performance - In the fourth quarter, Rivian produced 12,727 vehicles, a decrease of approximately 27% year-over-year, while deliveries increased by 2% to 14,183 vehicles, both figures meeting or exceeding management's estimates [4]. - For the entire year, Rivian produced just under 49,500 vehicles and delivered just over 51,500, with guidance for production set at 47,000 to 49,000 vehicles and deliveries at 50,500 to 52,000 vehicles [4]. Group 2: Supply Chain and Growth Potential - Management has indicated that the supply chain disruption is officially resolved, removing the previous constraints on production, which opens up growth opportunities for 2025, contingent on demand [6]. - The production and delivery levels are expected to modestly support gross margins during the fourth quarter, as more vehicles are processed through the assembly plant at lower fixed costs, which is positive for investor sentiment [7]. Group 3: Investment Considerations - Rivian's stock may be too speculative and volatile for conservative investors, suggesting it should only represent a small portion of any investment portfolio [8]. - Despite challenges, Rivian has secured significant partnerships, such as the joint venture with Volkswagen and a Department of Energy loan, indicating potential for future growth, although 2025 may lack immediate catalysts with no vehicle launches until 2026 [9]. - The upcoming fourth-quarter conference call on February 20 will provide insights into management's expectations for future deliveries, which could influence investor sentiment [10].

Core Viewpoint - Rivian Automotive is viewed as a sell despite a significant increase in the price target by an analyst, indicating skepticism about the company's profitability and cash burn rates [1][2]. Group 1: Analyst Evaluation - Garrett Nelson of CFRA raised Rivian's target price to $8 per share, a 60% increase from the previous target of $5, but maintains a sell recommendation as this target is still 51% below the stock's recent closing price [2]. - Several analysts adjusted their evaluations following Rivian's fourth-quarter and annual production and delivery reports, which exceeded consensus estimates with quarterly production of 12,727 vehicles and deliveries of 14,183 [3]. Group 2: Financial Concerns - Despite positive production and delivery numbers, there are concerns regarding Rivian's ability to achieve positive gross margins and the high rates of cash burn, which remain troubling for the historically unprofitable EV maker [4]. - The automotive industry is capital-intensive, and Rivian has yet to demonstrate it can produce at a scale that ensures reliable profitability, raising caution about its stock [5].

Rivian Automotive, Inc RIVN stock traded lower Monday. On Friday, the electric vehicle startup reported 14,183 vehicle deliveries for the December quarter.It marked its second-highest quarterly deliveries since its first EV in the fourth quarter of 2021. For the full year 2024, Rivian delivered 51,579 EVs.Analysts rerated the EV company on Friday following the numbers.Also Read: Stellantis, Volkswagen Stocks Tumble As US EV Tax Credits DisappearCantor Fitzgerald analyst Andres Sheppard reiterated Rivian Aut ...

Core Insights - Rivian Automotive Inc. (RIVN) stock surged over 24% on January 3, following the release of its production and delivery numbers for Q4 and full-year 2024, which met earlier predictions and impressed investors [1][2][5] Production and Delivery Performance - In Q4 2024, Rivian produced 12,727 electric vehicles (EVs) and delivered 14,183 EVs [3] - For the full year 2024, Rivian delivered 51,579 vehicles and produced 49,476 units, closely aligning with forecasts of 47,000 to 49,000 vehicles for production and 50,500 to 52,000 for deliveries [4] Market Context - Rivian's results were positively received amid concerns about overall market demand for EVs, especially following Tesla's first year-over-year decline in deliveries [5] Strategic Partnerships - Rivian's joint venture with Volkswagen (VWAGY) will enhance its global reach and manufacturing capabilities, allowing for scaled production and reduced development costs [6] - The partnership is expected to accelerate the introduction of next-generation EVs by 2026 and integrate Rivian's technology into future Volkswagen models, creating new revenue streams [7][8] Customer Base Expansion - Rivian is increasing production and delivery of electric vans to Amazon as part of its commitment to cleaner delivery options [9] - The company aims to expand its customer base by selling electric vans to other delivery fleet operators, although this transition may take time due to necessary facility adjustments [10] Stock Performance - Rivian's stock has shown strong momentum, with a 57.2% increase over the past three months, outperforming the industry's composite stock growth of 51% [11]

Stock Performance and Delivery Numbers - Rivian Automotive (RIVN) surged 24.45% to close at $16.49, marking its biggest single-day percentage gain since going public [1] - The company delivered 14,183 vehicles in Q4 2024, surpassing Wall Street's estimate of 13,000 units and edging out its Q4 2023 delivery figure of 13,972 units [1] - For the full year 2024, Rivian produced 49,476 vehicles, exceeding its guidance of 47,000–49,000 units, and delivered 51,579 units, aligning with its forecast of 50,500–52,000 units [2] Key Growth Drivers - Rivian has resolved component shortage issues, enabling smooth production of its R1 and RCV platforms [4] - A strategic partnership with Volkswagen (VWAGY) includes a $5.8 billion investment to enhance technological capabilities and accelerate production timelines [5] - The company plans to expand its product portfolio with the introduction of the R2, R3, and R3X models, targeting budget-conscious buyers with the R2 midsize SUV priced at $45,000 [6] - Rivian aims to achieve gross profitability by Q4 2024, with material costs for the R1 lineup projected to decline by 20% in 2025 and R2 model costs potentially decreasing by 45% [7] - A $6.6 billion loan from the U.S. Department of Energy will fund the construction of a new manufacturing facility in Georgia, expected to boost production capacity by 2028 [8] Financial Estimates - Zacks Consensus Estimates for revenue: $1.31 billion (Q4 2024), $1.10 billion (Q1 2025), $4.56 billion (2024), and $5.20 billion (2025) [10] - Year-over-year revenue growth estimates: -0.54% (Q4 2024), -8.67% (Q1 2025), 2.74% (2024), and 14.19% (2025) [10] - Zacks Consensus Estimates for EPS: -$0.67 (Q4 2024), -$0.86 (Q1 2025), -$4.03 (2024), and -$2.48 (2025) [10] - Year-over-year EPS growth estimates: 50.74% (Q4 2024), 27.73% (Q1 2025), 17.42% (2024), and 38.54% (2025) [10] Challenges and Risks - Rivian's cash and cash equivalents fell to $5.4 billion at the end of Q3 2024 from $7.9 billion at the end of 2023, reflecting significant cash burn [11] - The company lowered its adjusted EBITDA forecast for 2024, projecting losses of $2.83 to $2.88 billion, compared to its prior estimate of $2.7 billion [11] - Political uncertainties, including potential shifts in EV policies under Donald Trump's administration, add to the risks [12] - The EV market is becoming increasingly crowded, with established automakers and new entrants vying for market share [12] Valuation and Investment Considerations - Rivian is trading at a forward sales multiple of 3.21, higher than its peer group and its own five-year average of 3 [13] - The stock carries a Value Score of F, indicating stretched valuation [13] - Near-term risks and the stock's recent rally suggest that new investors may find better entry points during a pullback [15]

Rivian Automotive Stock Performance - Rivian Automotive (RIVN) shares surged 24.5% to $16.49 in the last trading session, driven by higher-than-average trading volume [1] - The stock's recent performance compares to a 7.4% gain over the past four weeks [1] Rivian's Production and Delivery Figures - Rivian delivered 51,579 vehicles in 2024, within its projected range of 50,500-52,000 units [2] - The company produced 49,476 vehicles in 2024, exceeding its outlook of 47,000-49,000 units [2] Rivian's Financial Expectations - Rivian is expected to post a quarterly loss of $0.67 per share, representing a year-over-year improvement of +50.7% [3] - Revenues are projected to be $1.31 billion, down 0.5% from the year-ago quarter [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days [4] Industry Comparison - Rivian Automotive is part of the Zacks Automotive - Domestic industry [4] - Blue Bird (BLBD), another stock in the same industry, closed the last trading session 8.1% higher at $41.77 [4] - Blue Bird has returned -5.2% in the past month [4] - Blue Bird's consensus EPS estimate for the upcoming report is $0.83, unchanged over the past month and representing an -8.8% change from the previous year [5] - Blue Bird currently holds a Zacks Rank of 1 (Strong Buy) [5]