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 ...

Spoiler: Yikes.So you've wanted to invest in the electric vehicle (EV) maker Rivian (RIVN -11.16%), but you haven't gotten around to it. In fact, you've wanted to invest in it for about three years. If you had invested in Rivian three years ago, how would you have done?Here's the answer to that question. Three years ago, in mid-December 2021, shares of Rivian were trading for around $115 apiece. Let's say that you invested in Rivian then, with $1,000. That would have gotten you close to nine shares. (Did yo ...

Core Viewpoint - The electric vehicle (EV) sector is currently facing multiple challenges, including potential regulatory changes and their impact on demand [1] Company Summary: Rivian Automotive - Rivian Automotive's stock has experienced a decline following a downgrade by Baird analyst Ben Kallo, who changed the rating from buy to hold, resulting in a drop of over 5% [2][3] - Despite a nearly 40% increase in stock price over the past month due to new capital infusions, the lack of immediate catalysts has led to a pessimistic outlook [3] - Recent investments include a potential $5.8 billion from Volkswagen Group over three years and a conditional loan of up to $6.6 billion from the U.S. Department of Energy for a new factory [4] - Concerns arise from the incoming administration potentially eliminating tax incentives for EV buyers, which may hinder demand in the upcoming year [5] - Rivian's improved financial condition is already reflected in the stock price, and without a significant acceleration in EV sales, the stock may remain stagnant [6] - The company is expected to begin production of its next-generation R2 vehicles next year, with shipments starting in early 2026, which could be a long-term growth driver [6]

Rivian's operations are a mess, and losing the $7,500 tax credit wouldn't help.Rivian (RIVN -2.75%) stock is on fire recently, but the company's operations are still burning billions in cash each year. Now there are rumors that the $7,500 tax credit will end under the Trump administration. Travis Hoium covers the potential impact in this video.*Stock prices used were end-of-day prices of Dec. 16, 2024. The video was published on Dec. 17, 2024. ...

Shares of electric Vehicle (EV) firm Rivian Automotive Inc (NASDAQ:RIVN) are 1.4% lower premarket, following a bear note at Baird. The analyst in question downgraded RIVN to "neutral" from "outperform" and cut its price target to $16 from $18, estimating lower EV sales expectations and "few catalysts in 2025" as the prime driving factor.Analysts are currently split on Rivian stock. While 13 rated the equity a "hold" or worse coming into today, 12 recommended a "buy" or better. This leaves room for additiona ...

Rivian (NASDAQ: RIVN ) stock has seen a 50% jump post-election, which shows that we must not value a company or sector depending on the perceived EV bias of the White House administration. The company has also performed well on some keyI have worked in the technology sector for over 4 years. This included working with industry stalwarts like IBM. I have done my MBA in finance and have been covering various blue chip stocks for the past 6 years. Having hands-on knowledge in the technology sector has helped m ...

The company is trying to follow in Tesla's footsteps as an outlier in a challenging automotive industry.Tesla was the trailblazer in the electric vehicle (EV) industry, and competitors, both incumbent brands and start-ups, have tried replicating its success ever since. Rivian Automotive (RIVN 1.20%) has done a solid job establishing itself as a legitimate presence in the field, with over 50,000 deliveries last year.Unfortunately, the stock hasn't had the same trajectory. Shares quickly peaked after Rivian w ...

Core Insights - Rivian's performance in recent Consumer Reports studies shows a stark contrast, ranking first in owner satisfaction but last in predicted reliability [3][5][7] Group 1: Owner Satisfaction - Rivian achieved the top rank in Consumer Reports' owner satisfaction ratings for the second consecutive year, with 86% of owners indicating they would repurchase the brand [5] - Rivian's satisfaction score places it ahead of luxury brands like BMW, Tesla, Porsche, and Lexus, with BMW in second place at 73% [5] Group 2: Reliability Ratings - In terms of reliability, Rivian ranked last with a score of 14, significantly lower than Cadillac's 27 and Tesla's 36, while Subaru and Lexus led with scores of 68 and 65 respectively [7] - The low reliability score reflects the challenges faced by newer electric vehicle manufacturers, as they often encounter more issues compared to established brands [9] Group 3: Market Implications - Despite the reliability concerns, the high owner satisfaction suggests a positive outlook for Rivian's future, particularly with upcoming models R2, R3, and R3X set to launch [10][11] - The overall trend in the electric vehicle industry indicates improving reliability, with the gap in problems between EVs and gasoline vehicles decreasing from 79% to 42% over recent years [10] - Rivian's stock price has surged by 36% over the past month, indicating investor optimism despite the mixed survey results [12][13]

Core Viewpoint - Rivian's stock has experienced significant volatility, with a recent surge of over 40% despite being more than 40% below its price at the beginning of the year, indicating a potential turnaround in market sentiment for the company [2][3]. Group 1: Stock Performance and Valuation - Rivian's shares fell from above $20 at the start of 2024 to below $10 last month, reflecting a broader trend of declining valuations in the electric vehicle (EV) sector [1][3]. - Since its IPO in 2021, Rivian's stock has lost over 80% of its value, with its market cap shrinking from approximately $100 billion to $14 billion, while Tesla's market cap stands at nearly $1.3 trillion [3][4]. - Rivian currently trades at 3.1 times sales, significantly lower than Tesla's 14 times and Lucid Group's nearly 10 times sales, suggesting that Rivian may be undervalued [5]. Group 2: Revenue Growth and Future Prospects - Despite the stock's decline, Rivian's sales have grown from nearly nothing to over $4 billion annually, peaking at more than $5 billion, indicating strong demand for its vehicles [4]. - The company plans to launch three new mass-market models in 2026, priced below $50,000, which could expand its customer base significantly [6]. - If Rivian can achieve positive gross margins in its upcoming quarterly report, it could signal a major turnaround and positively impact its stock price [9][10]. Group 3: Investment Strategy - Investors are advised to consider a long-term approach rather than focusing solely on quarterly results, especially given Rivian's current historically cheap valuation [11].

Industry Overview - The electric vehicle (EV) market experienced significant hype in 2021, with many EV makers going public at high valuations, but this enthusiasm has since diminished, leading to stock price declines of 80% or more for several start-ups [1] - Current expectations for most EV makers are low, creating potential buying opportunities for stocks trading at discounts [2] Company Focus: Rivian Automotive - Rivian Automotive is highlighted as a promising EV stock trading at a discount despite its growth potential [3] - The EV industry faced challenges in 2024, with demand growth not meeting expectations, contributing to downward pressure on valuations [4][5] - Although U.S. EV sales are growing, the growth rates have been below expectations, impacting companies like Rivian [6] Financial Performance - Rivian is currently losing money on each vehicle sold, contrasting with Tesla's early achievement of a positive gross margin [7] - Rivian's sales decline and limited model offerings (two models priced around $100,000) raise concerns about its ability to penetrate the mass market [8] Future Prospects - Despite a rocky start in 2024, EVs are expected to continue gaining market share, with Rivian's short-term challenges focused on achieving a positive gross margin and entering the mass market [9] - Rivian's management anticipates reaching a positive gross margin soon, which could positively impact its stock price [10] - The company is developing three new mass market vehicles priced below $50,000, which could significantly boost sales, similar to Tesla's experience with its Model 3 and Model Y [11] - High customer satisfaction and loyalty are expected to drive demand for Rivian's upcoming vehicles, potentially leading to a surge in valuation [12]