"Shares of EV manufacturer Rivian have been on a rollercoaster this year, surging and then falling after its first-quarter report. They recovered somewhat after the second-quarter report. In the latest results, revenue was up slightly year over year to $1.6 billion. The company posted a narrower-than-expected loss. The company noted this quarter was likely its strongest delivery quarter of the year due to the expiration of federal EV tax credits. Wall Street sentiment on the stock was mixed after the third-quarter report."
"The stock is almost 90% higher since its year-to-date low in April, despite facing challenges from reduced delivery targets and tariff pressures. However, it is countering those headwinds with cost efficiencies, strategic partnerships, and the anticipated R2 SUV launch next year. 24/7 Wall St. conducted some analysis to give investors a better idea of where they can expect the stock to be in a year. Let's take a look at whether Rivian can overcome its hurdles and return to growth."
"Why Invest in Rivian? Rivian is grappling with significant obstacles. Third-quarter deliveries totaled 13,201 vehicles, a 32.2% increase year over year. This comes as Rivian prepares for the launch of its 2026 model year vehicles. The company reaffirmed its 2025 delivery guidance of 41,500 to 43,500 vehicles. It cited softening demand due to the expired EV tax credits, as well as economic uncertainties and shifting consumer sentiment, as well as tariffs that are increasing manufacturing costs. So, sales for the current quarter could be weak."
Shares of Rivian recently fell 7.5% from a week earlier but remain 44.3% higher than a year ago, outperforming the S&P 500. Revenue for the latest quarter rose slightly year over year to $1.6 billion while losses narrowed. Third-quarter deliveries totaled 13,201 vehicles, a 32.2% increase year over year, and the company reaffirmed 2025 delivery guidance of 41,500–43,500 vehicles. Headwinds include softening demand after federal EV tax credits expired, tariff pressures, reduced delivery targets, and economic uncertainty. The company is pursuing cost efficiencies, strategic partnerships, and an anticipated R2 SUV launch to return to growth.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]