Shares of EV maker Rivian Automotive (NASDAQ:RIVN) have collapsed by nearly 27% over the past five sessions. From a high of about $171 back in November 2021, the stock has skidded to its present $18 level. So, what’s ailing Rivian? This week, the company priced $1.5 billion in green convertible notes due 2030. Rivian has been consistently churning out losses over the past three years, and the trend is expected to continue next year as well.
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While the company is looking to trim costs, it is losing more than $30,000 on every truck it sells. Although demand is looking up, the company’s recent vehicle delivery expectations disappointed investors. In Q3, Rivian produced 16,304 vehicles at its Illinois facility and made 15,564 vehicle deliveries. It expects to hit its previously stated outlook of producing 52,000 vehicles for the full year.
Further, the company expects to release its third-quarter results on November 7, after the market closes. Wall Street expects Rivian to incur a net loss per share of $1.36 on revenue of $1.32 billion for the quarter.
What is the Future Stock Price for RIVN?
Meanwhile, Morgan Stanley sees a 25% potential upside in the stock. Overall, the Street has a consensus price target of $29.40 for Rivian, alongside a Moderate Buy consensus rating.
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