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Rivian Stock Slips on Low Delivery Guidance
RIVNRivian Automotive(RIVN) Schaeffers Investment Research·2025-02-21 15:36

Core Viewpoint - Rivian Automotive Inc's stock has declined 5.1% to 12.90despitebetter−than−expectedfourth−quarterearningsandachievingitsfirstpositivegrossprofit,primarilyduetoaforecastofslowerdeliveriesin2023[1]Group1:FinancialPerformance−Rivianreportedapositivegrossprofitforthefirsttimeinitsfourth−quarterearnings[1]−Thecompanyexpectstodeliverbetween46,000to51,000electricvehicles(EVs)in2023,adecreasefrom51,579deliveriesinthepreviousyear[1]Group2:MarketReaction−Followingtheearningsreport,CantordowngradedRivian′sstockratingfrom"overweight"to"neutral"[2]−Fourotherbrokeragesraisedtheirpricetargets,withNeedhamincreasingitstargetfrom12.90 despite better-than-expected fourth-quarter earnings and achieving its first positive gross profit, primarily due to a forecast of slower deliveries in 2023 [1] Group 1: Financial Performance - Rivian reported a positive gross profit for the first time in its fourth-quarter earnings [1] - The company expects to deliver between 46,000 to 51,000 electric vehicles (EVs) in 2023, a decrease from 51,579 deliveries in the previous year [1] Group 2: Market Reaction - Following the earnings report, Cantor downgraded Rivian's stock rating from "overweight" to "neutral" [2] - Four other brokerages raised their price targets, with Needham increasing its target from 14 to 17[2]−Optionstradingvolumesurged,with141,000callsand58,000putstraded,whichisfourtimesthetypicalvolume[2]Group3:StockPerformance−Rivian′sstockisontrackforitsthirdconsecutivedailyloss,withthe17 [2] - Options trading volume surged, with 141,000 calls and 58,000 puts traded, which is four times the typical volume [2] Group 3: Stock Performance - Rivian's stock is on track for its third consecutive daily loss, with the 12 level acting as a familiar support [3] - Year-over-year, Rivian's equity has increased by 11.4% [3]