Rivian (RIVN) reported coagulated but minimal third-quarter gross Thursday aft the marketplace close, but losses were wider than expected portion the EV startup cited accumulation constraints. Rivian banal tumbled successful overnight trade.
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It's the archetypal net study for Rivian since its November IPO and since the EV startup began constricted deliveries. Rivian besides announced plans for a 2nd factory, successful Georgia.
Wall Street analysts began sum of the institution past week, with astir of them initiating Rivian banal astatine a bargain standing though determination were a fewer holds arsenic well. Price targets ranged from $104 to $165, with the mean astir $134.
Rivian has lone begun deliveries of its all-electric trucks. As of Dec. 15, Rivian produced 652 R1Ts and delivered 386. It besides produced and delivered its archetypal 2 R1S, a three-row seven-passenger SUV. Volume accumulation of the R1S is slated for the spring.
Earlier this week, MotorTrend named the Rivian R1T its Truck of the Year for 2022. The grant is different feather successful Rivian's cap, arsenic it bushed retired Tesla and different automakers successful bringing the archetypal all-electric pickup motortruck to market.
General Motors (GM) volition merchandise its luxury Hummer EV successful the adjacent fewer weeks, portion the more-affordable Ford (F) F-150 Lightning is owed by precocious spring.
Tesla (TSLA) had planned to motorboat its Cybertruck successful 2021, but it's been pushed backmost to precocious 2022, with measurement accumulation not until 2023.
Morgan Stanley expert Adam Jonas says Rivian is "the one" that tin situation Tesla. Jonas initiated sum of RIVN banal with an overweight standing and $147 terms target.
"We deliberation the R1T/R1S is the astir capable/desirable merchandise successful the marketplace for astir $80,000," helium wrote successful a caller enactment to clients. "The electrical transportation van (EDV) has the imaginable to predominate the accelerated increasing last mile EV fleet, which has been mostly unaddressed by the EV marketplace until now."
Rivian capitalist Amazon (AMZN) ordered 100,000 of its electrical transportation vans successful 2019. Jonas says that fig is apt to summation to 300,000 done 2025-26. Rivian said it expects to present the archetypal batch of vans to Amazon this month.
Rivian Earnings
Estimates: Analysts polled by FactSet expected Rivian to station a quarterly nonaccomplishment of $1.33 a share, portion income were seen reaching $926,400.
Results: Rivian generated gross of $1 cardinal for the quarter, supra views. But it reported a nonaccomplishment of $12.21 per share.
The institution said it expects to beryllium "a fewer 100 vehicles abbreviated of our 2021 accumulation people of 1,200."
Rivian said it had astir 71,000 preorders for its R1T pickup and R1S SUV successful North America arsenic of Dec. 15. Preorders necessitate a $1,000 refundable deposit.
Rivian said caller orders placed contiguous astir apt won't beryllium filled until 2023, owed to accumulation constraints.
Rivian Georgia Expansion
Rivian announced that it volition interruption crushed connected a conveyance assembly and artillery works eastbound of Atlanta successful Morgan and Walton counties successful the Summer of 2022, according an SEC filing connected Dec. 16. Production astatine this installation is slated for 2024. It volition person a capableness to nutrient 400,000 vehicles annually. Rivian already has an assembly works successful Normal, Illinois.
Rivian besides seemingly is looking to unfastened a works successful Europe by the extremity of 2023. The U.K. was offering Rivian much than 1 cardinal British pounds — $1.32 cardinal — to physique a works successful Somerset, the Financial Times reported connected Dec. 3.
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Rivian Stock
Shares fell 5.3% to 108.87 successful regular trading connected the stock marketplace today. Shares dropped 10% successful after-hours trading.
Rivian stock, which came nationalist Nov. 10, rocketed arsenic precocious arsenic 179.47 connected Nov. 16, but person since pared backmost those gains, according to MarketSmith. RIVN banal is up from its 78 IPO price.
If Rivian banal starts moving higher, it'll soon person an IPO basal with an authoritative bargain constituent of 179.57. Investors mightiness look for an aboriginal entry.
Rivian's Relative Strength Rating is simply a 89 retired of a best-possible 99.
Meanwhile, Tesla banal skidded 5% to 926.92. Rival EV startup Lucid (LCID) mislaid 1.6%.
Among U.S. bequest automakers with a increasing EV slate. GM banal edged little 0.5%. Ford climbed added 1%.
Toyota Motor (TM), which unveiled its monolithic propulsion into EVs earlier this week, inched up 0.6%, arsenic it announced higher wide accumulation successful January.
China-based EV startups Nio (NIO) fell 2.3%, Li Auto (LI) mislaid 1.5% and Xpeng (XPEV) declined 2.1%. Warren Buffett-backed BYD (BYDDF) roseate 1.8%.
Follow Adelia Cellini Linecker connected Twitter @IBD_Adelia.
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