Rivian (NASDAQ: RIVN), a producer of electric vehicles, went public at $78 on Nov. 10, 2021. Today, its stock trades at $15. It initially attracted a lot of attention because it already delivered its first vehicles, and its top investors were Amazon (NASDAQ: AMZN) and Ford (NYSE: F). However, Rivian lost its luster after missing ambitious production targets, incurring steep losses, and failing to justify its sky-high valuations. Ford also scrapped its plans to co-develop an electric pickup with Rivian and ...

Core Insights - General Motors (GM) is experiencing significant issues with its L87 6.2L V8 engine, which has led to federal safety regulators and vehicle owners raising concerns about engine failures even after a recall fix [1][10] Recall Details - In April 2025, GM recalled approximately 721,000 vehicles globally due to engine issues, with nearly 600,000 of these vehicles in the U.S. equipped with the problematic L87 engine [2] - The recall aimed to address serious internal issues, including manufacturing defects in connecting rods and crankshafts that could lead to engine seizure [3] - The remedy involved a two-step process where technicians inspected the engine and replaced it if damaged, or drained and refilled the oil with thicker 0W-40 oil if no damage was found [4] Ongoing Issues - As of January 2026, 36 vehicle owners reported engine failures despite having their vehicles inspected and fixed under the recall [5] - The National Highway Traffic Safety Administration (NHTSA) has opened a recall query (RQ26001) to investigate the adequacy of the previous solution and assess reports of sudden engine failures [6][7] Legal and Regulatory Pressure - A class-action lawsuit has been filed against GM, claiming that the recall caused confusion and that the fix may not be sufficient to prevent future problems [7] - The ongoing failures of the L87 engine have raised serious questions about the effectiveness of GM's remedy, increasing pressure on the company to provide a permanent solution [7] Competitive Context - Rivian Automotive is recalling 19,641 R1 vehicles for a rear suspension issue, while Ford has recalled over 272,000 hybrid and EVs due to a software issue affecting the Integrated Parking Module [8][9] Stock Performance - GM shares have increased by 51.9% over the past six months, outperforming the industry growth of 33.6% [13] - GM currently trades at a forward price-to-sales ratio of 0.41X, which is lower than both the industry average and its own five-year average, and holds a Value Score of A [14]

Core Insights - Rivian Automotive, Inc. is recalling 19,641 R1 vehicles due to a rear suspension issue that may have resulted from improper reassembly during prior service [1][8] Group 1: Recall Details - The recall affects specific R1 models from the 2022-2025 model years, including 7,031 R1S SUVs and 12,610 R1T pickup trucks [2] - Rivian will replace the rear toe link bolts at no cost to the vehicle owners [2] - The outdated service procedure used from April 1, 2022, to March 10, 2025, may lead to toe link separation, increasing the risk of a crash [3][8] Group 2: Incident Reports - As of the filing date, there has been one reported incident related to this issue, which involved a single-vehicle crash resulting in minor injuries [3] Group 3: Repair and Notification - Rivian plans to repair the affected vehicles using an updated service process, with owner notifications scheduled to begin on February 24, 2026 [4] Group 4: Market Performance - Rivian has outperformed the Zacks Automotive-Domestic industry over the past six months, with RIVN shares gaining 50.7% compared to the industry's 40% growth [7] Group 5: Financial Estimates - The Zacks Consensus Estimate for 2025 loss per share has widened by 2 cents in the past 30 days, while the estimate for 2026 loss per share has widened by a penny in the past week [10] - Rivian appears overvalued based on its price/sales ratio, trading at a forward sales multiple of 3.46, above the industry's 3.35 [11]

Core Insights - Rivian, once a leading electric vehicle (EV) IPO in 2021, has seen its stock price decline significantly from a peak market capitalization of $153.3 billion to approximately $21.5 billion today, reflecting a drastic reduction in valuation from 92 times its 2022 revenue to just three times its expected 2026 revenue [2][6] Production and Deliveries - Rivian produces three types of EVs: the R1T pickup truck, the R1S SUV, and custom electric delivery vans (EDVs) for Amazon and other companies [4] - In 2022, Rivian produced only 24,337 vehicles due to supply chain issues and competition, falling short of its initial goal of 50,000 vehicles [6] - In 2023, production increased to 57,232 vehicles, but the company faced another slowdown in 2024 and 2025, with expected production of 49,476 and 31,310 vehicles respectively [7] Financial Performance - Rivian's revenue grew from $1.66 billion in 2022 to $4.43 billion in 2023, with projections of $4.97 billion in 2024 and $4.10 billion in the first nine months of 2025 [7] - The company is expected to narrow its net loss from $6.75 billion in 2024 to $3.82 billion in 2025, driven by increased sales and regulatory credits [8] Future Projections - Analysts predict Rivian's revenue will rise to $6.87 billion in 2026, with a net loss of $3.66 billion, contingent on the successful launch of the R2 SUV [9] - By 2027, revenue could surge to $11.37 billion, assuming successful scaling of R2 production and increased EDV deliveries [9] Stock Outlook - Rivian has approximately $7.7 billion in liquidity, which it believes is sufficient to support the R2 production ramp-up [10] - If the R2 launch is successful and meets revenue targets, Rivian's stock could potentially rise by over 160% in the next 12 months [10]

Core Insights - Rivian Automotive, an electric vehicle manufacturer, has seen its stock price plummet from a peak of $172.01 post-IPO to approximately $13, significantly underperforming the S&P 500 [4][10] - The company faced challenges including supply chain issues, factory shutdowns, and a decline in consumer demand due to inflation and high interest rates, which have impacted its production and delivery rates [12][10] Company Performance - Rivian produced 24,337 vehicles and delivered 20,332 in 2022, but increased production to 57,232 vehicles and delivered 50,122 in 2023 [9][8] - The company expects to deliver between 40,000 to 46,000 vehicles in the current year, indicating a slowdown in growth [9][12] - Revenue for Rivian was $1.66 billion in 2022, increasing to $4.43 billion in 2023, with projections of $4.97 billion in 2024 [9][13] Financial Metrics - Rivian's market cap is currently around $16 billion, with a gross margin of -988.16% [7] - The company reported a net income loss of $6.75 billion in 2022, which narrowed to $5.43 billion in 2023, with expectations of further narrowing to $4.75 billion in 2024 [9][13] Future Outlook - Analysts predict a revenue increase of 32% to nearly $7 billion in 2026, driven by the launch of the R2 SUV and stabilization of existing vehicle sales [14] - By 2027, revenue is expected to surge by 62% to $11.32 billion, assuming successful scaling of R2 production and new plant operations in Georgia [15] Investment Considerations - Rivian's stock trades at just over 2 times next year's expected sales, compared to Tesla's 13 times, suggesting potential for speculative investment [16] - The upcoming launch of the R2 SUV is critical for Rivian's future success and could significantly impact its stock valuation [16]

Core Insights - Rivian Automotive is proceeding with the construction of a $5 billion electric vehicle plant in Georgia, despite challenges such as the rollback of federal electric vehicle tax credits [1][2] - The Georgia facility is crucial for Rivian's strategy to achieve profitability and scale production, with plans to manufacture 200,000 vehicles annually starting in 2028 [3][5] - Rivian's current production is limited, with expectations to deliver only 40,000 to 46,000 vehicles this year, down from 52,000 last year, as the company prepares for new model launches [4] Company Strategy - Rivian's Chief Policy Officer emphasized that the company is not reliant on federal tax incentives for its success, focusing instead on the superiority of its electric vehicles [2] - The company aims to expand its product lineup with the introduction of smaller R2 SUVs next year, priced starting at $45,000, to attract a broader market [3] Market Context - The electric vehicle market in the U.S. is experiencing slowing sales growth, with only a 1.5% increase in the first half of 2025 [5] - Tesla remains the dominant player, holding nearly 45% of U.S. electric vehicle sales, while Rivian's market share is at 3%, indicating significant competition from established automakers like General Motors [6]

Core Insights - Rivian is set to resume preparatory work on its Georgia factory in August, aiming to break ground early next year, following a $6.6 billion funding approval from the Biden administration's Department of Energy [1][9] - The company has invested over $80 million in the project as of June 20, 2025, with plans for "deep utilities" installation starting in August and "vertical construction" beginning in Q1 2026 [2] - Rivian is actively engaging with existing suppliers to explore co-location opportunities near the Georgia factory, which is expected to support the production of the R2 SUV and R3 hatchback by 2028 [3] Investment and Job Creation - As of June 2025, Rivian's investment in the Georgia factory has increased from $41 million in July 2024 to over $80 million, creating 46 full-time jobs so far [2] - The company plans to leverage Georgia's strong automotive supplier base to optimize logistics costs and enhance the supply chain, which is expected to promote regional and national job growth [14] Project Timeline and Challenges - Rivian initially announced the Georgia factory project post-IPO in late 2021, with original plans for construction to start in 2022 and production by 2024, backed by $5 billion investment and $1.5 billion in state incentives [7][8] - The project faced delays due to local opposition and supply chain issues, leading Rivian to prioritize expansion at its Illinois factory instead [8] - The timeline for the Georgia project was pushed back, with the company announcing the delay in 2024 during the unveiling of the R2 SUV and R3 hatchback [8] Government Engagement - Rivian's CEO RJ Scaringe met with Georgia's Governor Brian Kemp in May to discuss ongoing work and project updates, indicating a strong partnership with the state [4] - The company is coordinating with the state's economic development department to identify existing suppliers in the region that can support the factory's operations [13][14]