EV maker Rivian Automotive (RIVN) saw its shares dip in after-hours trading after reporting its Q2 results. Earnings per share came in at -$1.13, which beat analysts’ consensus estimate of -$1.24 per share. However, revenue came in at $1.158 billion, which missed estimates of $1.165 billion. The earnings loss was due to lower selling prices and plant upgrades that caused some inefficiencies.
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Nevertheless, the firm did boost vehicle deliveries and cut down on material costs, which helped a bit. In Q2, Rivian made 9,612 vehicles and delivered 13,790, matching what it expected.
In addition, Rivian’s expenses rose to $924 million this quarter, up from last year, but its adjusted EBITDA was slightly better than anticipated at -$860 million. It ended the quarter with $7.87 billion in cash, thanks partly to a $1 billion convertible note from Volkswagen for a joint venture. Including all its available resources, Rivian has $9.18 billion in total liquidity.
The company is focusing on cost efficiency and product improvement and hopes to see a modest gross profit by Q4. Rivian is sticking with its 2024 target of making 57,000 vehicles and expects a full-year adjusted EBITDA of -$2.7 billion with capital expenditures of $1.2 billion.
Is RIVN Stock a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RIVN stock based on 12 Buys, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 39% decrease in its share price over the past year, the average RIVN price target of $18 per share implies 21.62% upside potential.
