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.
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.
