Rivian Automotive (RIVN -2.78%) stock has been on the upswing in the latter part of the year. Shares of the electric vehicle (EV) maker have soared 38% over the past month, as of this writing. Yet the stock has still dropped about 40% in 2024.With its business at an inflection point heading into 2025, investors may wonder whether it's time to buy Rivian stock while it's below $15 per share.Good news for RivianThe recent surge in Rivian shares came after investors learned of two new deals that will bolster t ...

Rivian's Financial Progress - Rivian is close to achieving a positive gross profit, indicating that its revenue from vehicle sales is sufficient to cover production costs [1] - The company aims to post a "modest gross profit" in Q4 2024, despite supply chain challenges [9] - Achieving gross profit is a significant milestone, showing potential for scaling production and covering other costs [10] Strategic Partnerships - Rivian has a foundational relationship with Amazon, which provides a solid customer base for its delivery vehicles [3] - Amazon stepped in to assist Rivian during supply chain issues in 2024, highlighting the strength of their partnership [4][5] - Rivian expanded its partnership with Volkswagen in 2024, securing an additional $5 billion in funding over several years [15] - The Volkswagen partnership not only provides immediate cash but also positions Rivian as a long-term technology supplier [12] Financial Position and Challenges - Rivian's cash reserves decreased from $7.9 billion at the start of 2024 to $5.4 billion, reflecting high capital expenditures in the auto industry [7] - The company shifted production strategies to mitigate supply chain constraints, focusing on Tri-Motors and commercial vans [11] Market Potential and Risks - Rivian is making strides toward profitability and leveraging key partnerships to grow its business [13] - The EV market is highly competitive, and while Rivian shows promise, there are risks associated with its ambitious goals [14]

Stock Performance - Rivian shares have returned 34% in the past month but are still down 41% year-to-date, trading at just over $14 [2] - Shares have been volatile in 2024, starting above $23, dropping below $9 in April, rising above $18 in July, and falling under $10 in November before rising again [1] Production and Delivery Challenges - Rivian delivered just over 10,000 cars in Q3 2024, a 36% drop from Q3 2023 and the lowest figure since Q2 2023 [3] - Vehicle production in Q3 2024 was down 19% compared to the same quarter in 2023, primarily due to significant supply chain issues [3] Financial Performance and Profitability - Rivian's normalized net income margin over the last 12 months is -76%, highlighting the challenge of achieving profitability [4] - The company projects a positive gross margin in Q4 2024, driven by a 20% reduction in material costs compared to Q1 2024 [6] - Rivian plans to sell regulatory credits to achieve gross margin positivity by 2025 [7] Strategic Initiatives and Partnerships - Rivian has established a $5.8 billion joint venture with Volkswagen, which will use Rivian's software in its upcoming EVs [5] - The company expects a 45% reduction in material costs for its R2 model, set to launch in 2026, with a projected selling price of $45,000 [8] - The lower price point of the R2 model may attract more buyers, potentially increasing economies of scale and profitability [8] Market Position and Growth Potential - Rivian's sales are declining while the overall U.S. EV market grew by 11% in Q3 2024, reaching a record size [10] - The company's partnership with Volkswagen provides significant cash and confidence, but its path to long-term profitability remains uncertain [9][10] Analyst Sentiment - The average Wall Street price target for Rivian is $15.74, implying a 12% upside from the current price [9] - Rivian currently holds a "Hold" rating among analysts, with some top-rated analysts suggesting other stocks as better buys [12]

Rivian Automotive (RIVN) ended the recent trading session at $14.04, demonstrating a -0.14% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.04%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq lost 0.05%.Shares of the a manufacturer of motor vehicles and passenger cars have appreciated by 15.06% over the course of the past month, underperforming the Auto-Tires-Trucks sector's gain of 20.36% and outperforming the S&P 500's gain of 1.05 ...

Core Viewpoint - Rivian has secured significant funding through a joint venture with Volkswagen valued at up to $5.8 billion and a conditional commitment for a $6.6 billion loan from the Department of Energy (DOE) [1][17]. Volkswagen Joint Venture - Volkswagen has already invested $1 billion into Rivian and plans to invest an additional $1 billion upon the completion of a financial milestone, which requires Rivian to achieve two nonconsecutive quarters of $50 million gross profit or two consecutive quarters of gross profit [3][9]. - Rivian has the option to draw a $1 billion loan from Volkswagen in October 2026, with favorable terms compared to what Rivian could secure independently [4]. - The next $1 billion from Volkswagen is contingent upon Rivian successfully testing the joint venture's technology in winter testing [10]. - Volkswagen will fund 75% of the shared platform costs within the joint venture through 2028, with Rivian covering the remaining 25% [16]. Department of Energy Loan - Rivian received a conditional commitment from the DOE for a loan of up to $6.6 billion, which will support the construction of its Georgia factory [17][18]. - The DOE loan can be provided at U.S. Treasury rates, offering significant financial relief to Rivian as a young startup [18]. - The approval process for the DOE loan requires a reasonable prospect of repayment, indicating confidence in Rivian's financial viability [13]. Future Outlook - Rivian's 2025 may be relatively quiet with no major launches, but the end of 2024 is critical as the company navigates potential tariffs and the risk of losing the $7,500 federal tax credit for electric vehicles [8]. - Rivian is currently working on providing financing documents to close the DOE loan deal, which is essential for fund distribution [12]. - The company expects to utilize approximately $275 million in regulatory credits in the fourth quarter, which could help meet half of the $50 million gross profit milestone [15]. - Rivian has up to five years to complete the financial milestone for the Volkswagen deal, and closing the DOE loan sooner would position the company favorably for its upcoming vehicle launches [19].

Core Viewpoint - Rivian Automotive has the potential to become the next Tesla, with new mass market vehicles set to launch in 2026, but it must first achieve key production and quality objectives to match Tesla's sales trajectory [1][2]. Group 1: Production and Sales - Rivian needs to ramp up production facilities and deliver new mass market vehicles on time while maintaining quality to see sales growth similar to Tesla's [2]. - The company reached $5 billion in sales earlier this year but is currently losing money on each vehicle sold, accumulating a gross loss of nearly $2 billion over the past 12 months [3]. Group 2: Financial Performance - Rivian's management expects to achieve positive gross profits by the end of 2024, which would be a significant milestone given the current losses of nearly $40,000 per vehicle sold last quarter [5]. - Achieving positive gross profits in the upcoming quarter could significantly improve market sentiment and clarify the company's future prospects [6].

Despite volatility in the headlines, the electric vehicle (EV) industry has been on a consistent uptrend over the past several years. Today, 7.8% of vehicles sold in the U.S. are electric. That's up from just 3.3% at the start of 2022. There have been dips along the way -- including a fairly precipitous drop in the first quarter of 2021 -- but the overall trajectory is undeniably positive, with most long-term forecasts calling for steadily higher demand for EVs over the next decade and beyond. While the ind ...

Core Insights - The future of Rivian Automotive hinges on its ability to execute its plans for mass market vehicles, similar to Tesla's trajectory [3][5][6] Company Overview - Rivian currently offers two luxury vehicles priced around $100,000, with plans to introduce three new mass market models (R2, R3, R3X) starting in 2026, all expected to be priced under $50,000 [5][6] - The company is in a position akin to Tesla's early days, where it must transition from luxury to mass market to achieve significant growth [2][5] Financial Considerations - Rivian needs to raise billions in additional capital to support its factory infrastructure and ensure timely market entry for its new vehicles [6] - The company must maintain its reputation for quality, which is critical for its success in the competitive electric vehicle market [6] Market Potential - Rivian is viewed as having high upside potential, with the possibility of becoming a significant player in the electric vehicle market if management can effectively execute its strategy [3][6] - The stock is considered ideal for aggressive growth investors who are willing to endure volatility for potential high returns [6]

Workplace Culture and Harassment Allegations - Rivian has faced multiple harassment lawsuits, with at least four employees suing the company in 2024 over allegations of harassment by top executives and inadequate responses from leadership [7][8] - Former employees, including Elizabeth Curran and Nathan Facciolla, accused chief designer Jeff Hammoud of creating a hostile work environment, with incidents of "irrational outbursts of anger" and derogatory remarks [8][9] - Jeremiah Powe, a line worker, filed a lawsuit alleging assault and battery by former COO Frank Klein, who allegedly pulled Powe to the ground for violating the dress code [6][8] - Nicole Hawkins, a production worker, claimed physical harassment and threats by a coworker, with HR allegedly failing to take action [8] - Angela Betancourt and Natasha Hill also filed lawsuits alleging sexual harassment and workplace misconduct, with both cases eventually settled [12] HR and Internal Response - Employees reported incidents to HR, but many claimed the department was unresponsive or failed to take meaningful action [5][6][8][9] - Rivian stated it has "explicit policies" addressing workplace conduct and investigates allegations thoroughly, but employees disputed the effectiveness of these measures [5][8] Leadership and Executive Behavior - Jeff Hammoud, chief designer, was accused of creating a toxic work environment, including overworking employees and making inappropriate comments [5][8][9] - Frank Klein, former COO, allegedly assaulted an employee and faced prior complaints from other workers before leaving Rivian in September 2024 [6][8][11] Settlements and Legal Outcomes - Rivian has settled multiple harassment and discrimination cases, including those involving Betancourt, Hill, and Schwab, a former head of sales and marketing [7][8][12] - Laura Schwab's 2021 lawsuit highlighted a "toxic bro culture" at Rivian, which garnered significant attention ahead of the company's IPO [8] Broader Implications - The lawsuits suggest ongoing cultural challenges at Rivian, particularly in addressing workplace harassment and ensuring accountability among leadership [8][12] - The company's internal culture has been under scrutiny since its IPO in 2021, with allegations of misconduct continuing to surface [8]

Shares of California-based electric vehicle (EV) maker Rivian Automotive (RIVN) are having a rough run on the bourses this year. Year to date, the stock is down 46%. Much of the decline is part of the broader struggles in the EV space. Lofty expectations for rapid adoption have been tempered by reality. Limited charging infrastructure, high vehicle prices and economic uncertainties have slowed EV demand. Adding to the complexity, the potential expiration of federal EV tax credits and an unfriendly stance to ...