Can Recently Listed Rivian Make the Cut in Commercial EV Space?

Based out of Irvine, CA, Rivian Automotive, Inc. (NASDAQ: RIVN) is an electric vehicle and automotive technology company. Founded in 2009 by Robert Scaringe, the company focuses on producing electric trucks. Rivian commenced deliveries of its R1T pickup truck in 2021. The company is also developing an electric delivery van in partnership with Amazon (NASDAQ: AMZN)

Rivian made its debut on the Nasdaq on November 10, 2021. The company sold 153 million shares at an initial offering price of $ 78 per share, raising about $ 12 billion. The stock closed the trading day at a per-share price of $ 100.73.

Unfortunately, due to various macroeconomic headwinds and operational difficulties, its stock has plummeted 71.2% since its listing. Presently, the company commands a market cap of $ 26.10 billion.

Q1 Performance

In its latest first-quarter results, Rivian Automotive generated revenues of $ 95 million and reported a loss of $ 1.42 per share, better than the consensus loss estimate of $ 1.48 per share. While the company produced 2,553 vehicles in the first quarter, it delivered 1,227 units.

As of March 31, 2022, its balance of cash, cash equivalents and restricted cash stood at $ 17 billion.

Performance on TipRanks

TipRanks’ Stock Investors tool shows that top investors currently have a Positive stance on RIVN, as 3.4% of the top portfolios tracked by TipRanks increased their exposure to RIVN stock over the past 30 days.

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Rivian’s performance this quarter.

According to the tool, the Rivian website recorded a 145.11% monthly rise in global visits in April, compared to the same period last year. Further, the footfall on the company’s website has grown 110.42% year-to-date, compared to the previous year. The increased number of visits to the company’s website shows growth in its potential customers.

However, TipRanks’ Hedge Fund Trading Activity tool shows that hedge fund confidence in RIVN is currently Very Negative. According to the tool, the cumulative change in holdings across all 10 hedge funds that were active in the last quarter was a decrease of 4.7 million shares.

Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on nine Buys, six Holds and one Sell. Rivian’s average price target of $ 49.50 implies that the stock has upside potential of 70.8% from current levels. Shares have declined 71.8% so far this year.

Conclusion

Rivian’s losses have been widening with muted growth in revenues. Further, increased competition in the commercial EV space is another cause of concern for the company. However, the company’s new developments and strategic partnerships in the space could pave the path for its future growth.

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