Written by Cláudio Afonso | [email protected] | LinkedIn | X
Truist Securities upheld a Hold rating on Rivian shares, maintaining a consistent stock price target of $11.00. On Friday, the shares reached a new all-time low of $9.08 per share, marking a 94.9% decline from the all-time high reached in 2021 and resulting in a market capitalization of just under $9 billion.
In a new research note, the firm said Rivian‘s outlook lies in its potential to enhance margins following the planned production pause at its factory in Normal in this quarter. Rivian’s factory is currently temporary closure until the end of the April for the implementation of new technologies and production methods aimed at substantial cost reduction.
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Truist analyst sees that broader concerns about the EV market are expected to persist, presenting ongoing challenges for Rivian’s stock in the coming quarters.
In late February, the firm slashed its Rivian price target from $26 to $11. This decision followed the company’s guidance for 2024 vehicle production, which stood at 57,000 vehicles, significantly lower than the analyst median forecast of 66,000 vehicles.
The firm initiated coverage on the stock in September 2022, at the time with a Buy rating and $65.00 price target.
The manufacturer announced this week 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.
The company’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.
Rivian 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.
Written by Cláudio Afonso | [email protected] | LinkedIn | X
