Written by Cláudio Afonso | [email protected] | LinkedIn | X
On Monday, UBS analyst Joseph Spak revised Rivian Automotive‘s stock rating from Sell to Neutral, maintaining a $9 price target. Rivian shares dipped to a new all time low of $8.40 per share, marking an 8 percent decrease. The decline followed a significant sector-wide downturn spurred by Tesla’s layoff announcement.
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The near-term risk-reward on the stock has become more balanced at current levels as shares now price in about $4.5B in 2025 sales vs. consensus that stands still at $7.5B, the analyst tells investors in a new research note.
Short interest on the stock has also climbed to about 19% of free float, positioning the name better if a positive data point or a catalyst emerges, even though shares are likely to remain volatile, the firm added.
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UBS further notes ‘solid’ demand for Rivian vehicles despite the slowing EV market as one of the factors behind its bull thesis, though a reluctance by investors to buy shares ahead of a likely capital raise underpins the bear case.
Last week, the manufacturer 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.
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
