Gary Black Sees Rivian Delivering 54K Vehicles This Year, Says EV Maker To Turn Gross Margin Positive By 2024 End
Portfolio Pulse from Anan Ashraf
Gary Black, Future Fund Managing Partner, is optimistic about Rivian Automotive Inc's prospects, expecting it to deliver 54,000 vehicles in 2023, including 14,000 delivery vans. AT&T Inc announced a pilot program to purchase EVs from Rivian, marking Rivian's first deal since ending its exclusivity agreement with Amazon.com Inc. Black predicts Rivian will become gross margin positive by Q4 2024 and EBITDA positive by 2026. Rivian shares closed 14% higher at $22.43 following the announcement.
December 15, 2023 | 5:05 am
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POSITIVE IMPACT
Rivian is expected to deliver 54,000 vehicles in 2023 and is projected to become gross margin positive by the end of 2024. The new deal with AT&T and the end of the exclusivity agreement with Amazon could lead to more customer diversification and positive financial outcomes.
The positive outlook from Gary Black and the new deal with AT&T are likely to boost investor confidence in Rivian's growth potential and financial prospects, leading to a positive short-term impact on the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Amazon, a Rivian shareholder, has over 10,000 Rivian-made vans on the road but has amended its exclusivity agreement, allowing Rivian to sell to other fleet operators.
Amazon's amendment of the exclusivity agreement with Rivian could potentially reduce its competitive edge as Rivian's sole customer. However, as a shareholder, Amazon may benefit from Rivian's growth, balancing the short-term impact on its stock.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 70
NEUTRAL IMPACT
AT&T announced a pilot program to purchase EVs from Rivian, indicating its commitment to reducing transport emissions and potentially increasing its operational efficiency.
While the deal with Rivian is a positive step for AT&T's sustainability goals, the short-term impact on the stock is likely to be neutral as the financial details of the deal and its impact on AT&T's operations are not specified.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50