Rivian Reports 70% Increase in Deliveries and Confirms 2024 Production Goal

Rivian Reports 70% Increase in Deliveries and Confirms 2024 Production Goal

Rivian Automobile (RIVN) on Tuesday reported better-than-expected vehicle deliveries in the first quarter and doubled its full-year production target. RIVN shares fell early.




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Irvine, Calif.-based Rivian reported Tuesday that first-quarter vehicle deliveries totaled 13,588 as it produced 13,980. For 2024, Rivian also reaffirmed its previous forecast to produce 57,000. vehicles.

Before Tuesday’s release, analysts expected Rivian to ship 13,000 units in the first quarter. On February 21, Rivian predicted that 2024 production would remain stable compared to 2023, while passenger and commercial vehicle deliveries would see single-digit growth in 2024.

The automaker also expects vehicle deliveries in the first quarter of 2024 to be approximately 10-15% lower than in the fourth quarter of 2023, which was 13,972. However, Rivian’s first-quarter deliveries did not decreased by only 3%.

Rivian shares fell 4.7% to 10.57 in market share Tuesday. On Monday, RIVN shares advanced 1.3% to 11.09.

Rivian Stock: new product range and financing

The EV startup revealed the R2 – its smaller, cheaper next-generation vehicle and platform – on March 7. The vehicle is priced at an estimated starting price of $45,000 and it is hoped that it will also qualify for the $7,500 Inflation Reduction Act (IRA) tax. credit.

The vehicle was to be produced at Rivian’s new factory in Georgia. However, the company has halted construction of its $5 billion factory and is opening an R2 production line at its Illinois plant. Production of the R2 platform is expected to begin in 2026 with the first deliveries planned for the first half of 2026.

Rivian also announced the R3, a more compact crossover-style vehicle that uses the R2 platform, as well as a high-performance R3X offering. The company did not mention pricing or delivery estimates for the R3 or R3X. Rivian said the R3 would be priced lower than the R2 and that deliveries of the R3X would begin after the R2.

Within 24 hours of the launch, Rivian said it received more than 68,000 reservations for the R2.

RIVN shares surged on positive sentiment from the EV startup’s R2 and R3 vehicle reveal event. However, questions remain over whether the company can bring its new product line to market without help, amid falling demand for electric vehicles.

After the event, Morgan Stanley analyst Adam Jonas wrote that R3’s reveal “stole the show.” However, the analyst was also cautious.

“While Rivian has excited the market with the unveiling of its pipeline of new products for the next three years, investors may also want to consider the potential risks of showing too much,” Jonas said.

The analyst added that the decision to suspend factory plans in Georgia, which is expected to save about $2.25 billion in capital expenditures, was just as important as the new products. However, Jonas also wrote that he doesn’t think Rivian can bring its new products to market on its own.

The Rivian monetary question

The Rivian product launch came after it announced a fourth-quarter loss of $1.36 per share on Feb. 21, with revenue doubling to $1.31 billion. Wall Street expected a loss of $1.35 and revenue totaling $1.28 billion. The automaker also announced that it was laying off 10% of its employees.

You’re here (TSLA) Chief Executive Elon Musk posted on X, formerly Twitter, on February 21 that, based on Rivian’s quarterly cash flow, the company could go bankrupt in about six quarters.

Claire McDonough, chief financial officer, told investors on the fourth-quarter earnings call that Rivian remains “confident that our cash, cash equivalents and near-term investments can fund our operations through 2025.”

“We aim to maintain a strong balance sheet position by continuing to generate cost savings and improve the profitability of our vehicle units, while opportunistically evaluating a variety of capital markets available to Rivian, across the structure of the capital,” McDonough said.

Rivian stock ranks ninth in IBD Automotive Manufacturers Industry Group. RIVN has a 20 Composite score out of 99. Additionally, the title has a 7 Relative Strength Rating and his EPS rating is 40 out of 99.

Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.

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