Rivian Stock Forecast: Is Rivian Stock a Buy?
Is Rivian Stock a Buy: RIVN IPO
RIVN is closed 10.47% lower $42.43 on March 7th.
Rivian’s initial public offering (IPO) priced 153 million shares at $78 a share on Nov. 9, 2021, much above the predicted range. Rivian’s first public offering (IPO) raised $11.9 billion, giving it a market capitalization of $77 billion. On Nov. 16, 2021, shares jumped to 179.47 but eventually plummeted over the coming weeks and months.
RIVN had a massive IPO, but shares have since fallen far below their IPO price, due to a general market slowdown. After a major sell-off since its November IPO, the stock has recovered. While the stock hit lows of approximately $54 per share in late January, it has subsequently gained nearly 15% to around $62 per share.
Is Rivian stock a Buy: Earnings
Rivian made a decent profit in the third quarter, but huge losses. Sales were around $1 million, while losses per share were $12.21. Those numbers match what the company predicted in a recent SEC filing. Rivian will announce its fourth-quarter and full-year 2021 financial results on March 10. On sales of $50.4 million, analysts expect the company to cut losses from the previous quarter to $1.58 per share.
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Is Rivian stock a Buy: Price Hikes and Amazon’s Stake
Rivian thinks that its R1T pickup truck and R1S SUV models will need to be priced up to 20% more. In a statement seen by Reuters, Jiten Behl, the company’s chief growth officer, cited “inflationary pressure, rising component costs, and unprecedented supply chain problems and delays for parts (particularly semiconductor chips).” Rivian is increasing the price of its R1T electric pickup by around 17%, bringing the starting price to around $78.975 from $67,500. The R1S SUV’s price will increase by around 20%, from $70,000 to almost $84,000. All costs are in addition to the $7,500 federal tax credit.
According to recent reports, The company is prioritizing the development of electric vans for Amazon. Amazon has placed an order for 100,000 Rivian electric vans. On February 2, 2022, Amazon announced that it owned around 18 percent of Rivian. Amazon, on the other hand, is searching for other ways to electrify its fleet. Amazon and Stellantis (STLA) announced a partnership on Jan. 5, 2022, to create automobiles with Amazon software in the dashboards. Stellantis will also produce Amazon’s electric delivery vehicles.
Rivian’s R1T, backed by Amazon (AMZN) and Ford, beat Tesla and General Motors to the punch as the EV market for electric trucks heats up. However, production has been delayed, and the R1S SUV has been pushed back to spring 2022.
Is Rivian stock a Buy: Latest Analysis Video
Is Rivian stock a Buy: R1T Pickup truck and Competition
Rivian’s R1T is the first electric pickup to hit the market, but it won’t be the last. The Driver+ advanced driver assistance technology is standard on the R1T and R1S. Drivers can use the Level 2 system in a variety of driving and parking conditions. Rivian had produced 652 R1Ts and delivered 386 as of Dec. 15, 2021. It also manufactured and delivered the first two R1S SUVs, which are three-row seven-passenger SUVs. The R1S will be mass-produced in the spring.
GM expects to start shipping its high-end electric Hummer later this year. In 2023, General Motors plans to release a Silverado EV and a GMC electric truck. The F-150 Lightning, Ford’s first electric truck, will be available in spring 2022. It has a 300-mile range, compared to the Rivian’s 314-mile range per charge.
Elon Musk, the CEO of Tesla, stated that Cybertruck manufacturing will not begin until “ideally” 2023. That could be due to problems mass-producing 4680 batteries, which are necessary for the Cybertruck and the long-delayed Semi and Roadster to be feasible.
In July 2020, Tesla filed a trade secret misappropriation lawsuit in California against Rivian and a number of former Tesla/current Rivian employees. It’s been added to the lawsuit recently. Rivian has stated that it will strongly defend itself against the allegations.
Is Rivian stock a Buy: Rivian Stock Forecast
As per the analyst forecast, in next 12 months, the stock is expected to trade between $105 and $130.
Is Rivian stock a Buy: Conclusion
Rivian will begin to generate revenue once deliveries begin, with rapid growth from essentially zero expected. Heavy losses, on the other hand, are likely to continue for a while. Rivian stock is not yet a buy, as it is now trading below to its IPO price. Rivian has delayed deliveries and supply chain issues. Analysts believe that is has to sustain the competition in the upcoming days or weeks.
Is Rivian stock a buy? Given the factor and current macroeconomics, the recommendation is to hold this stock position.
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