Rivian Automotive (NASDAQ:RIVN) shares plunged by nearly 7% today after the electric vehicle maker announced its vehicle production and delivery numbers for the first quarter. The company is set to announce its first-quarter results on May 7.
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Rivian’s Q1 Numbers
Rivian produced 13,980 vehicles at its Illinois facility and delivered a total of 13,588 vehicles in Q1. For the full year, it reaffirmed expectations of producing 57,000 units. Sequentially, the numbers declined from roughly 17,500 units produced and 14,000 deliveries in the prior quarter. Still, the figures indicate a significant ramp over the year-ago milestone of around 9,400 vehicles produced and 7,900 deliveries.
Rivian’s Challenges
Importantly, the Q1 vehicle numbers came in better than the Street’s expectations despite Rivian experiencing production challenges in recent times. Last month, Rivian halted plans to set up a new facility in Georgia. The company anticipates savings of nearly $2.25 billion from the move. Earlier this year, it announced job cuts amid challenging times for the broader EV industry. According to Reuters, Rivian is also planning a production shutdown in the second quarter to upgrade its production systems.
Rivian’s Performance Evaluation
Amid these challenges, Rivian’s share price has declined by nearly 56% so far this year. Consequently, the EV maker’s first-quarter results on May 7 will be a key event to keep an eye on. Analysts expect the company to post a net loss per share of $1.14 on revenue of $1.12 billion for the quarter. In the comparable year-ago period, Rivian’s net loss per share of $1.25 had come in narrower than the Street’s expectations by $0.37.
What Is the Target Price for RIVN Stock?
Overall, the consensus rating on the stock remains a Moderate Buy. Moreover, the average RIVN price target of $17.67 points to a substantial 68.8% potential upside in the stock.
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