What Is Rivian?
Rivian is a U.S. electric vehicle manufacturer based in California. Right now, it sells its R1S SUV and R1T pickup truck. It also provides fleet services for vans, all of which run on the Rivian operating system, and sells branded accessories and ancillary services.
Will Rivian Be Successful?
Rivian has developed a unique brand targeted at adventurers and environmentally conscious consumers. It’s run by a mission-driven CEO, Robert Scaringe, whose overarching goal is to shift transportation to more environmentally friendly alternatives.
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Rivian Stock Price Prediction 2025, 2030 |
The company has built an ecosystem of products that could support a recurring revenue model in the future. It has a charging network and insurance services in addition to its core vehicles
Is Rivian Stock a Buy, Sell or Hold?
Rivian, at its height, was a company worth more than $150 billion. Now, the company is valued at roughly $18.96 billion. Yet, it had nearly $14 billion in cash and equivalents as of Q3 2022. It must be a bargain, right? Not necessarily.
Burning Cash
Rivian is in a difficult situation because of its aggressive cash burn. The company is expected to burn through over $21 billion in cash through fiscal year 2025, and it spent $2.07 billion in Q3 2022 alone. Currently, there isn’t enough revenue growth to justify this spending, as the company posted revenue of just $536 million in sales in the quarter.
If Rivian continues to burn through cash so aggressively without seeing a massive increase in sales volume and production, it will continue to lose money. Its valuation and the stock price are likely to fall in tandem.
Production Difficulties Improving
Rivian management cited both inflationary pressures and supply chain issues as reasons for elevated costs and limited production — factors that may take some time to resolve.
What Is the Forecast for Rivian Stock?
What are analysts saying about Rivian stock? A number of analysts have weighed in on its price.
The estimates range from a high of $70 to a low of $21.46, with a median 12-month price target of $46.22. Of the 20 polled analysts who follow the stock, 11 gave a strong buy or buy rating, five have hold ratings and two have underperform ratings, according to Yahoo Finance.
