Barclays analyst Dan Levy has revised Rivian Automotive‘s price target on Friday down to $10 from $12 while maintaining an Equal Weight rating on the shares.
The updated target represents an upside potential of 13.25 percent based on Thursday’s closing price of $8.83 per share.
Levy points to the company’s strategic pivot concerning R2 and the postponement of Georgia operations, which alleviates the need for immediate capital raises but extends the timeline for widespread deployment.
Rivian’s plant in Illinois is currently temporary closed until the end of the month for the implementation of new technologies and production methods aimed at substantial cost reduction.
Additionally, the firm has adjusted volume projections for the remainder of the decade due to subdued demand for R1 and commercial vans, coupled with the delayed rollout of R2.
As initially reported by EV, the company started on Wednesday a new round of layoffs to “support our goal to be gross margin positive by the end of the year,” as said in an email to Reuters.
The company recently announced that until the end of April, Rivian‘s R1T and R1S vehicles ordered from the automaker’s inventory will include a complimentary XPEL Stealth paint protective film (PPF) valued at $5,000.
Rivian’s recent update to the NHTSA’s VIN database reveals preparations for the introduction of a Tri-Motor variant and a new “Premium” trim level for the 2025 version of its model R1S and R1T.
This expansion of options accompanies the upcoming release of the 2025 R1S and R1T later this year.
Last week, the company reported 13,980 vehicles produced in the first quarter of the year of which 13,588 were delivered to its customers.
Despite having previously guided a 10-15% quarter over quarter drop from the fourth quarter, Rivian is on track and reaffirmed its 2024 production guidance of 57,000 vehicles.
