Rivian Stock Forecast 2023-2027
Rivian Stock Forecast 2023 is $28.5
Latest Rivian Stock Price
Rivian Stock in the Last 12 Months
- Last 1 Month: +3.8%
- Last 6 Months: +59.4%
- Last 12 Months: -23.9%
Rivian Stock Price Target (Analysts, 12 Months)
|RIVN Price Target for the Next 12 months||$27.0|
Rivian Stock Price Prediction 2023-2027, Aggregated
- RIVN Rivian Stock Price Prediction 2023 is $20.2
- RIVN Rivian Stock Price Prediction 2024 is $31.3
- RIVN Rivian Stock Price Prediction 2025 is $37.3
- RIVN Rivian Stock Price Prediction 2026 is $51.7
- RIVN Rivian Stock Price Prediction 2027 is $63.8
Rivian Stock Forecast Today, Tomorrow and Week
- RIVN Rivian Stock Price Prediction in the next 24 hours is between $18.6 and $19.5
- RIVN Rivian Stock Price Prediction this week is between $17.1 and $18.5
|1. Market's Wisdom||N/A|
|1a. Market Data||N/A|
|1b. Technical Recommendation||Neutral|
|2. Crowd's Wisdom||Bullish|
|2a. Social Media Buzz||Higher|
|2b. Social Media Sentiment||Higher|
Second Quarter 2023 Financial Highlights
- In the second quarter of 2023, total revenues reached $1,121 million, primarily driven by the delivery of 12,640 vehicles, which included an additional $34 million from the sale of regulatory credits.
- Total operating expenses for the second quarter of 2023 decreased to $873 million from $1,004 million in the same period the previous year. Within operating expenses, a non-cash, stock-based compensation expense of $158 million was recognized in the second quarter of 2023, compared to $229 million in the same quarter of 2022.
- The net loss for the second quarter of 2023 improved to $(1,195) million, compared to a net loss of $(1,712) million in the same period the previous year.
- The company’s adjusted EBITDA for the second quarter of 2023 improved to $(881) million, compared to $(1,305) million in the same period in the prior year.
- Capital expenditures for the second quarter of 2023 were $(255) million, a decrease from $(359) million in the same period the previous year.
- The company ended the second quarter of 2023 with $10,202 million in cash, cash equivalents, and short-term investments. When including the capacity under its asset-based revolving-credit facility, total liquidity at the end of the quarter reached $11,317 million.
Quarterly Result Summary
|(USD)||June 2023||Mar 2023||Dec 2022||Sep 2022|
|Net profit margin||-37%||-204.08%||-259.88%||-321.64%|
|Net change in cash||-2.2B||-319M||-1.7B||-1.66B|
|Cost of revenue||1.5B||1.2B||1.66B||1.45B|
The revenue of Rivian Automotive has been increasing. In all the last 4 quarters Rivian registered an increase in revenue on a YoY basis. However, the stocks of Rivian have failed to beat its earnings. Of the 4 quarters, RIVN registered positive Earnings only in the 2nd quarter, In the rest of the 3 quarters Rivina missed its earnings target. The worst performance by the Rivian stock was in the first quarter followed by the 4th quarter of 2022.
RIVN Stock Revenue and EPS Summary
|Mar 2023||Beat 21.48%||Miss -1.38%|
|Dec 2022||Beat 11.40%||Miss -9.11%|
|Sep 2022||Beat 14.18%||Miss -3.26%|
|Jun 2022||Beat 0.87%||Beat 7.70%|
Rivian Stock Forecast: Factors that Could Help RIVN Rise in the Future
Rivian Amazon Relationship: Rivian despite having a smaller market share has found a reliable partner in the US market. The Rivian’s relationship with Amazon has given RIVIAN an upstart with capital. Amazon invested $700 million in RIVN in 2019. Additionally, Amazon plans to purchase 100,000 custom-built electric delivery vans from the company, as part of its move to electrify its last-mile fleet by 2040. This has helped Rivian scale up its EV market in the US and in times to come this factor will help RIVIAN grow in the United States.
Growing US EV Market: The US EV Market is growing. In 2022, over 800,000 EVs were sold in the States and it is projected that the market will increase up to 1 million in 2023. Rivian delivered 20,332 vehicles while producing 24,337. Their market share might be small (2.6%) but for a new automaker building its first-ever vehicles, it is a huge achievement. With US EV market growing, RIVN is bound to grow.
Rivian’s charging network: The US EV owners are well aware of Tesla’s charging network but RIVN is putting in all effort to develop its own charging modern. By end of 2023, Rivian intends to install more than 3500 fast chargers and 10,000 level 2 chargers. It will help boost confidence among users about Rivian and also shows the intentions of management that they intend to be in this space for the long haul.
No Dealer Model for Rivian: Rivian has adopted the policy of direct sales model and no dealer model. Rivian wants to be responsible for everything for its products – from sales to charging to services. This model is expected to provide a differentiated experience to customers and create a long-term positive effect. Also, it will allow Rivian to offer membership and software services, finance, and insurance and create a recurring revenue apart from sales.
Rivian Stock Forecast 2023: Factors that Could Lead to RIVN Crash
No Clear Path of Profitability: In the last quarter, RIVIAN missed the revenue target by 3.26%. The expected revenue target was $554M while the revenue for Rivian was $536M. Additionally, Rivian’s profitability fell 39.8% which is $1.72 B. On the other hand, the cost of revenue for Rivian was up 1640%.
The management has failed to provide a clear path to profitability.
Strong Competition – Primary product of Rivian is an electric truck and although it is very strong, other players are too offering electric trucks that cannot be ignored. For example, Tesla’s Cybertruck and Ford F-150, both have received promising reviews from users. Also, Tesla and Ford are much ahead in the number of pre-bookings. While Ford has 200,000 non-binding reservations for the F-150 truck and Tesla has more than 1.25 million pre-orders for Cybertruck, Rivian has only 71,000 orders. The competition is going to be intensified in the future.
The breakup of the partnership with Ford – A large part of the IPO success of Rivian belonged to the partnership with Ford which had invested $500 million in the automaker. Prior to the IPO, Ford announced plans to develop the electric vehicle in collaboration with Rivian on its platform. But soon after the IPO, Rivian acknowledged that there are no such plans as of now and both companies are focusing on their individual plans to excel in the EV field. This will impact the Rivian stock forecast for 2022.
Missing Production Target: Rivian had set up a target of 25,000 EVs for 2022. However, the EV startup produced 24,337 vehicles in 2022, including 10,020 in the fourth quarter. Of those, 20,332 vehicles were delivered to customers during the year, including more than 8,000 from October through December. After missing the target the Rivian stock crashed.
Final Conclusion: Is Rivian a Good Buy?
Rivian with its newly launched IPO was one of the most attractive EV stocks in 2022 initially. The backing of Amazon and the partnership with Ford was something that would bring a great advantage to a newly launched EV startup.
However, soon after the launch of the IPO Rivian announced that there were no plans of collaborating with Ford to build the EVs as both companies were working on their individual products.
Additionally, Amazon announced that it is working with Fiat Chrysler parent Stellantis to buy the same electric commercial vehicles. It is taken as a setback for Rivian and seen through the lens of mistrust of Rivian to deliver on its promises.
With the US EV market growing Rivian is a buy for the long term but for the short-term RIVN is a risky stock. The above-mentioned bull and the bear cases could give an investor a proper idea about their investment in RIVN.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.