"Shares of Rivian Automotive Inc. ( NASDAQ: RIVN) are changing hands for 3.4% less than a week ago, underperforming the Nasdaq. Analysts anticipate strong demand for the EV maker's R2 SUV after its coming launch. However, Rivian has announced some job cuts, and the federal EV tax credit expires at the end of the month. The share price is 6.6% higher than a year ago."
"In the latest results, revenue was up slightly year over year and sequentially to $1.3 billion. However, the company also posted a wider-than-expected loss and widened its full-year loss projection due to tariffs and the loss of EV tax credits. This reflected a 90% decline from its November 2021 IPO high. Some Wall Street analysts decreased their price targets after the report."
"Still, the stock is 34.6% 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 launch."
Rivian's shares have experienced volatility this year, trading slightly lower week-over-week but up 6.6% versus last year and 34.6% from the April low. Revenue rose modestly to $1.3 billion sequentially and year over year, while losses widened and full-year loss guidance increased due to tariffs and lost EV tax credits. The company forecast lower deliveries for 2025 than 2024, announced some job cuts, and expects demand for the upcoming R2 SUV. Consecutive quarters of positive gross profit and a solid cash position help offset headwinds as some analysts trim price targets.
Read at 24/7 Wall St.
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