Rivian Stock Sinks on Deliveries Miss, Production Outlook
Rivian stock is spiraling Friday after the EV maker reported dismal Q3 deliveries and cut its production outlook for the year. Here's what you need to know.
Rivian Automotive (RIVN) stock is sinking in Friday's session after the electric vehicle (EV) maker came up short of delivery expectations for its third quarter and lowered its production outlook for 2024.
RIVN delivered 10,018 vehicles in the third quarter, a decrease of 35.6% from the year-ago period. As a result of supply shortages, the company lowered its full-year production outlook to a range of 47,000 to 49,000 vehicles after previously guiding for 57,000 vehicles.
"Rivian is experiencing a production disruption due to a shortage of a shared component on the R1 and RCV platforms," the company said. "This supply shortage impact began in Q3 of this year, has become more acute in recent weeks and continues."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Despite the production issues, Rivian reaffirmed its annual delivery outlook of 50,500 to 52,000 vehicles, which represents low single-digit growth compared to 2023.
The third-quarter deliveries came in below analysts' expectations. Wall Street was anticipating deliveries of 13,000, according to CNBC.
Is Rivian stock a buy, sell or hold?
It's been a rough stretch for the consumer discretionary stock, which is down more than 53% for the year to date. Still, Wall Street is bullish toward Rivian.
According to S&P Global Market Intelligence, the average analyst target price for RIVN stock is $17.53, representing implied upside of nearly 75% to current levels. Additionally, the consensus recommendation is Buy. However, these ratings and estimates may change following the recent news.
And some on Wall Street have already turned negative on the EV stock. Financial services firm CFRA Research, for instance, reiterated its Sell rating this morning and lowered its price target on Rivian to $5 from $8 following the production cut.
"We have been skeptical of RIVN's ability to achieve its 2024 guidance from the start and think the announcement is likely to raise red flags among investors," says CFRA Research analyst Garrett Nelson. "In our view, the list of concerns related to the RIVN story is lengthy: slowing EV growth, a lack of visibility related to its reservation count, a troublesome cash burn rate, and the high capital expenditures requirements of building a new factory in Georgia."
Related Content
-
Is Home Insurance Tax Deductible?With home insurance rates on the rise, you might be hoping to at least claim the cost as a tax deduction. Here's what you need to know ahead of tax season.
-
The December Jobs Report Is Out. Here's What It Means for the Next Fed MeetingThe December jobs report signaled a sluggish labor market, but it's not weak enough for the Fed to cut rates later this month.
-
Trump Signals Plan to Ban Institutional Investors From Buying Single-Family HomesThe president says the move could improve housing affordability. Here’s what the data shows about investor ownership, recent buying trends and what it could mean for homebuyers.
-
The December Jobs Report Is Out. Here's What It Means for the Next Fed Meeting
The December jobs report signaled a sluggish labor market, but it's not weak enough for the Fed to cut rates later this month.
-
4 Simple Money Targets to Aim for in 2026 (And How to Hit Them), From a Financial PlannerWhile January is the perfect time to strengthen your financial well-being, you're more likely to succeed if you set realistic goals and work with a partner.
-
I'm a Wealth Adviser: Everyone Needs an Estate Plan (Seriously, Even You)If you've acquired assets over time, even just a home and some savings, you have an estate. That means you need a plan for that estate for your beneficiaries.
-
How to Be a Smart Insurance Shopper: The Price Might Be Right, But the Coverage Might Not BeChoosing the cheapest policy could cost you when you have a loss. You'll get the best results if you focus on the right coverage with the help of a good agent.
-
7 Reasons Why Your Portfolio Needs Short-Term Bond ETFsMoney market funds are a safe option for your cash, but ultra-short and short-term bond ETFs also deserve consideration. Here are seven reasons why.
-
Nasdaq Takes a Hit as the Tech Trade Falters: Stock Market TodayThe Dow Jones Industrial Average outperformed on strength in cyclical stocks.
-
I'm a Wealth Planner: Forget 2026 Market Forecasts and Focus on These 3 Goals for Financial SuccessWe know the economy is unpredictable and markets will do what they do, no matter who predicts what. Here's how to focus on what you can control.
-
I'm a Financial Adviser: Why In-Person Financial Guidance Remains the Gold StandardFace-to-face conversations between advisers and clients provide the human touch that encourages accountability and a real connection.
