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Rivian Automotive (RIVN) reported better-than-expected first-quarter car deliveries and doubled down on its full-year manufacturing objective Tuesday. RIVN shares fell Tuesday.
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Rivian, primarily based in Irvine, Calif., introduced Tuesday that car deliveries in Q1 totaled 13,588 whereas it produced 13,980. For 2024, Rivian additionally reaffirmed earlier steerage of manufacturing 57,000 autos.
Forward of Tuesday’s launch, analysts anticipated Rivian to ship 13,000 models in Q1. On Feb. 21, Rivian predicted that 2024 manufacturing would stay flat in contrast with 2023 whereas client and industrial car deliveries will to develop by low single-digits in 2024.
The carmaker additionally forecast that car deliveries in Q1 2024 can be about 10%-15% decrease than in This autumn 2023, which totaled 13,972. Nonetheless, Rivian’s Q1 deliveries declined solely 3%.
Rivian inventory dropped 5.2% to 10.51 throughout inventory market motion Tuesday. On Monday, RIVN shares superior 1.3% to 11.09.
Rivian Inventory: New Product Line And Funding
The EV startup unveiled the R2 — its smaller, cheaper, next-generation car and platform — on March 7. The car is priced at an estimated beginning worth of $45,000 with expectations it is going to additionally qualify for the $7,500 Inflation Discount Act (IRA) tax credit score.
The car had been deliberate to be produced at Rivian’s new manufacturing facility in Georgia. Nonetheless, the corporate halted building of its $5 billion manufacturing facility and is opening an R2 manufacturing line at its Illinois plant. Manufacturing of the R2 platform is anticipated to start in 2026 with the primary deliveries set for the primary half of 2026.
Rivian additionally introduced the R3, a extra compact crossover fashion car that makes use of the R2 platform, and a high-performance R3X providing. The corporate didn’t point out pricing or supply estimates for the R3 or R3X. Rivian did say the R3 shall be at a cheaper price level than the R2 and that deliveries for the R3X will start after the R2.
Inside 24 hours after the launch, Rivian mentioned it acquired greater than 68,000 reservations for the R2.
RIVN shares jumped on optimistic sentiment across the EV startup’s R2 and R3 car reveal occasion. Nonetheless, questions stay whether or not the corporate can convey its new product line to market with out assist amid waning EV demand.
After the occasion, Morgan Stanley analyst Adam Jonas wrote that the R3 reveal “stole the present.” Nonetheless, the analyst additionally voiced warning.
“Whereas Rivian excited the market with the unveil of its subsequent 3 years of latest product pipeline, buyers may wish to ponder the potential dangers of exhibiting an excessive amount of,” Jonas mentioned.
The analyst added that doubtlessly simply as vital as the brand new merchandise was the choice to pause its Georgia plant plans, which ought to save round $2.25 billion in capital spending. Nonetheless, Jonas additionally wrote that he doesn’t consider Rivian can convey its new merchandise to the market by itself.
Rivian’s Money Query
Rivian’s product launch got here after it introduced on Feb. 21 a lack of $1.36 per share in This autumn with gross sales doubling to $1.31 billion. Wall Avenue anticipated a lack of $1.35 and income totaling $1.28 billion. The carmaker additionally mentioned it was shedding 10% of its salaried employees.
Tesla (TSLA) Chief Govt Elon Musk posted on X, previously Twitter, late on Feb. 21 that primarily based on Rivian’s quarterly money available, the corporate might go bankrupt in round six quarters.
Chief Monetary Officer Claire McDonough advised buyers on the This autumn earnings name that Rivian stays “assured that our money, money equivalents and short-term investments can fund our operations via 2025.”
“We purpose to take care of a robust stability sheet place by persevering with to drive value efficiencies and enhance our car unit economics, whereas opportunistically evaluating quite a lot of capital markets obtainable to Rivian ranging throughout the capital construction,” McDonough mentioned.
Rivian inventory ranks ninth in IBD’s Automakers business group. RIVN has a 20 Composite Score out of 99. Moreover, the inventory has a 7 Relative Energy Score and its EPS Score is 40 out of 99.
Please observe Equipment Norton on X, previously referred to as Twitter, @KitNorton for extra protection.
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