Five Years On, Reflecting On Rivian's Electric Vehicle Launch At LA Auto Show
Portfolio Pulse from Anan Ashraf
Rivian Automotive Inc (NASDAQ:RIVN) celebrated the five-year anniversary of its R1T electric truck and R1S SUV unveiling at the LA Auto Show. Initially promising deliveries in 2020, Rivian faced delays and began deliveries in 2021. The company has seen significant growth, delivering 15,564 vehicles in Q3 of the current year. Rivian's vehicles are priced at the higher end, with the R1T at $73,000 and the R1S SUV at $78,000. The company reported Q3 revenue of $1.337 billion and a loss of $1.19 per share, outperforming analyst expectations. Looking forward, Rivian aims for positive gross profit by 2024 and plans to launch the R2 platform in 2026, with unveilings expected in early 2024. The R2 will be more affordable, targeting the $45,000 to $50,000 price range for midsize SUVs, a segment where Tesla Inc. currently dominates.
November 27, 2023 | 4:22 pm
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Rivian has shown growth in vehicle deliveries and beat analyst estimates for Q3 earnings. The company is focusing on future profitability and expanding its product line with the R2 platform, aiming to offer more affordable EV options.
The positive delivery numbers and better-than-expected earnings report are likely to instill investor confidence in Rivian's growth trajectory. The announcement of the R2 platform, targeting a more affordable price range, could expand Rivian's market presence and appeal to a broader customer base, potentially increasing the stock's attractiveness in the short term.
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IMPORTANCE 80
RELEVANCE 100