The electric vehicle (EV) bubble is slowly bursting as I warned a few months ago. Now, according to Bloomberg, the sector is melting down in Europe, which is often seen as a key market. NEW YORK , April 25, 2024 /PRNewswire/ — Attorney Advertising — Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed ag… According to 23 analysts, the average rating for RIVN stock is “Buy.” The 12-month stock price forecast is $17.91, which is an increase of 98.12% from the latest price.
Rivian Automotive, Inc. (RIVN)
The R1S comes with a 260 to 320-mile range and can also wade through 3 feet of water. The R1S also boasts the ability to rock crawl up a 100% incline or 45-degree slope. You can obtain Rivian’s investor relations material in the Investors section of our website. Rivian’s independent registered public accounting firm is KPMG LLP. You can view our executive officers by visiting the Governance section of our Investor Relations website or visit the Our Company page to learn about our entire leadership team. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time.
Sales & Book Value
Electric vehicle startup Rivian is now a publicly traded company after executing one of the biggest initial public offerings in history. Rivian shares started trading on the Nasdaq stock exchange Wednesday at around $78 per share. That gave Rivian an overall valuation of nearly $80 billion and helped it net $12 billion in fresh cash, despite the fact that it only just recently started to make and ship its first electric pickup trucks. Rivian’s IPO raised nearly $12 billion, making it the largest IPO in the U.S. since 2014. The stock was up more than 21% from its initial opening price to the close of trading on Nov. 12, 2021, three trading days after the IPO. The broader U.S. equity market, as measured by the S&P 500, was basically flat over the same period.
Rivian Releases Fourth Quarter and Full Year 2023 Financial Results
Sitting at just under $8 billion today, at its current pace, Rivian only has enough cash to last another two to three years at best. In 2023, Rivian produced more than 57,000 vehicles, its best year ever. Just three years ago, Rivian manufactured just over 1,000 vehicles. For now, I am waiting to see if Rivian can continue to make progress on its efficiency before giving it a spot in my portfolio.
Price vs Fair Value
The company was founded in 2009 and is based in San Jose, California. Rivian is among the greenest of the EV makers choosing to achieve carbon neutrality well ahead of the Paris Climate Accord timeline. Come along for a virtual tour of our state-of-the-art manufacturing https://forex-review.net/ facility in Normal, Illinois. Watch as Rivian founder and CEO RJ Scaringe walks you through each shop to explain how we’re making progress in producing electric vehicles at scale. Originally founded in 2009, Rivian spent nearly a decade operating in stealth mode.
The size of the IPO and the rapid rise in Rivian’s stock price reflects investors’ excitement about the EV market, especially for startups seeking to develop EVs that compete with traditional automakers. Rivian and many other automakers are betting that consumers are prepared to shift rapidly to electric vehicles over the next decade. General Motors has said pepperstone canada it aims to phase out production of gasoline-powered vehicles by 2035. It’s the sixth-largest IPO ever on a US stock exchange, according to Bloomberg, and it’s hard to imagine the company picking a better time to debut. Tesla has generated an incredible amount of interest in electric vehicles and is now one of the most highly valued companies in the world.
Rivian lost $994 million in the first six months of 2021 alone and has said in regulatory filings that it expects to spend another $8 billion by the end of 2023. Rivian’s stock price recovered significantly through the first half of 2023, reaching a https://broker-review.org/etoro/ period high of $28.06 on July 27, 2023. However, momentum has subsequently reversed with a $1.5bn convertible green note received poorly by the financial markets,[151] causing the share price to decline to a daily low of $15.88 on October 26, 2023.
CEO and founder RJ Scaringe initially wanted to make an electric sports car more or less similar to the Tesla Roadster. But he nixed that plan along the way and shifted the company toward developing an electric pickup truck and an SUV. The R1T and R1S, as they’re respectively called, made their debut at the 2018 LA Auto Show. Either way, the splashy debut is sure to draw a lot of attention to the startup and its electric vehicles. It has also provided Rivian with a crucial windfall, as it needs a lot of money to grow — and survive — in the notoriously cash-hungry automotive business.
- The public markets have also been on an outrageous run over the last few years — a run that was supercharged over the last 18 months by an influx of retail traders and a boom in electric vehicle companies going public.
- The broader U.S. equity market, as measured by the S&P 500, was basically flat over the same period.
- The company expects competition in the EV market to intensify due to a greater regulatory push for alternative fuel vehicles and other factors.
- Rivian is also building the Rivian Adventure Network, a series of charging stations along popular routes and out-of-the-way destinations.
The R1T comes with 8 different drive modes geared for offroading, city adventures, and everything in between. Among the choices is the “Drift” mode which proactively distributes power to offset traction control and increase the “fun” factor. The vehicle comes with a 240 to 400-mile range depending on the battery and motor combination and individual driving styles. In regard to its capabilities, the truck can go from 0 to 60 in 3 seconds, tow up to 11,000 pounds, and wade through 3 feet of water with no problems. Rivian Automotive Inc. shares closed at a fresh record low on Thursday, with the competitive landscape for electric trucks set to get even hotter after Ford Motor Co. said it will cut prices. At Rivian, we’re committed to showing that a successful business can also be good for the planet.
Rivian Automotive Inc. (RIVN) designs and manufactures electric vehicles (EVs) and accessories and offers related services. The company produces and has begun delivery of its first-generation consumer vehicle, which is a two-row, five-passenger pickup truck named the R1T. Later this year it plans to begin delivering a three-row, seven-passenger SUV named the R1S. These vehicles are equipped with a set of advanced technology systems and are designed to accommodate consumers with active lifestyles. Rivian also plans to launch an electric delivery van (EDV) for business customers.
The next few years will be trying and a period where Rivian will have to prove if it’s a true contender or just another pretender. Rivian’s inability to generate income has forced it to utilize its cash position to sustain operations. Fortunately, its massive IPO helped bolster reserves, but in a matter of three years, its total cash position has been reduced by more than 60%.
While production is up, costs have cut into any chance of turning a profit. Perhaps most importantly, the company is beginning construction of its new 1,800-acre factory outside Atlanta this year. With phase one expected to be completed in 2026, it will increase total output by 200,000 units. Once fully operational in 2030, Rivian expects production to increase by 400,000. Over the last three years, Rivian has made significant progress in terms of production. While production is typically the most challenging obstacle preventing companies from achieving profitability, Rivian is showing promise in refining its EV supply chain.
Insiders that own company stock include Claire Mcdonough, Jay T Flatley, Jeff Baker, Jiten Behl, Kjell Gruner, Motor Co Ford, Robert J Scaringe and Rose M Marcario. Rivian Automotive’s stock was trading at $23.46 at the beginning of 2024. Since then, RIVN stock has decreased by 61.5% and is now trading at $9.04. UBS analyst Joe Spak upgraded shares of electric-vehicle maker Rivian Automotive to Hold from Sell.
Rivian’s competitors include, as mentioned, Tesla and Ford, and also other traditional automakers making a big push into the EV market, such as German-based Volkswagen AG (VOW3) and General Motors Co. (GM). Rivian also faces competition from China-based EV makers like NIO Inc. (NIO) and BYD Auto, a subsidiary of BYD Co. Rivian said that it expects to generate most of its revenue in the near term from sales of vehicles, accessories, and regulatory credits. Gradually, it will then begin to generate more substantial revenue from offering value-added services spanning the lifecycle of its vehicles, which will deepen its relationship with customers.