Credit: RIVIAN

Rivian shares hit a new All Time Low, down 84% from its November 2021 high

Written by Cláudio Afonso | | LinkedIn | Twitter

The share price of the electric truck maker Rivian Automotive hit, in the first hour of the Friday session, a new all-time low at $28.71. Earlier this month, the company announced a $1.5 billion state and local incentive package for its second factory planned for Georgia. On Dec. 3, 2021, The Financial Times reported that the UK was offering Rivian $1.32 billion to build a plant in Somerset.

Rivian announced on April 5 that produced a total of 2,553 vehicles in Q1 2022 at its manufacturing facility in Normal, Illinois. The EV maker delivered 1,227 vehicles during the same period being in line with the company’s expectations for the year. Rivian believes it is “well positioned to deliver on the 25,000 annual production guidance provided during its Q4 earnings call on March 10, 2022”. 

Rivian had its IPO on November 10, 2021, raising nearly $13 Billion with a price of $78.00 per share. By then, Rivian and Lucid stocks were among the favorites for short-squeeze traders leading Rivian shares to their All-Time-High at $179.47 after the first week of trading. Rivian shares are now trading around $32.50, 82% down from their recent highs.

The company will report its financial results on May 11, 2022, after market close. Rivian will host an audio webcast to discuss its results and provide a business update at 2:00pm PT / 5:00pm ET the same day.

Recently, Deutsche Bank analyst Emmanuel Rosner maintained the firm’s Buy rating on Rivian Automotive lowering the price target from $91 to $90. Three months after initiating coverage on the company shares, the analyst had decreased the firm’s price target from $130 to $91. Based on the last closing price, Deutsche Bank’s new price target implies an upside potential of 167%.

Also, Mizuho Securities analyst Vijay Rakesh lowered the firm’s price target on Rivian shares to $90 from $95 while maintaining a Buy rating. In addition, Piper Sandler analyst Alexander Potter lowered the firm’s its price target on Rivian shares to $112 from $130.

Recently, Rivian CEO RJ Scaringe warned that the shortage of electric vehicles batteries can affect the auto industry soon being a challenge that “could surpass the current computer-chip shortage”. Auto makers have been facing limited supplies of raw materials like cobalt, lithium and nickel that are fundamental when making a battery.

Written by Cláudio Afonso | | LinkedIn | Twitter