Rivian's EV Deliveries Slump, But Expansion Plans and Star Investors Lift Hopes
Rivian Automotive, once a high-flying electric vehicle (EV) startup, has seen its quarterly deliveries slow down after peaking in 2023. Despite facing challenges, the company continues to attract significant investment and plans expansion. Its stock, however, has plummeted and remains unprofitable, raising caution among investors on the stock market today.
Rivian's quarterly deliveries, which once peaked in 2023, have since slowed down to around 10,000 units per quarter. The company's stock has taken a hit, with its market cap currently at $17.7 billion and revenue at $5 billion. However, Rivian's potential is vast, with projections suggesting annual revenue could reach $20 billion by the end of the decade. If Rivian achieves a profit margin between 0% and 10%, it could net earnings of $1 billion.
Rivian's large backers, though not explicitly named, are financing the company's expansion. These investors include notable figures like Marc Tarpenning, Yves Béhar, and Marc Benioff, as well as venture capital firms. The company is expanding its Illinois factory and building a new one in Georgia to produce cheaper models (R2 and R3) and increase accessibility.
Investors are advised to tread carefully with Rivian stock due to its historical losses, thin gross margins, and significant cash burn. The EV market has seen a boom and bust cycle, with many companies going bankrupt. Rivian's stock may have bottomed and could double by 2030 if it successfully scales up production, but the risk of failure persists.
Rivian Automotive's growth trajectory has slowed, but the company continues to attract investment and plans expansion. Its potential for significant revenue growth is clear, but investors should remain cautious due to the company's historical losses and the volatile nature of the stock market. Rivian's stock could double by 2030 if it successfully scales up production, but the risk of failure is real.
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