AUTO - Is Rivian Stock a Good Buy Right Now?
Rivian stock ( NASDAQ:RIVN ) rose 14% on October 4 after the electric vehicle, SUV, and van manufacturer released its latest production figures.
Rivian’s Primary Business
Rivian offers three vehicles: the R1T pickup truck, the R1S SUV, and an Amazon-branded electric delivery van (EDV). The e-commerce behemoth is a significant investor in Rivian and has previously ordered 100,000 Rivian EDVs to be completely delivered by 2030. Rivian began shipping R1T pickups soon before its IPO, and it delivered its first batch of EDVs to Amazon in July. However, the initial deliveries of its R1S SUVs have been pushed back from the anticipated mid-2021 launch date to late 2022.
Rivian’s Primary Difficulties
Rivian’s automobiles have a lot of unmet demand. Rivian had received around 98,000 preorders for their R1 cars by the end of the second quarter of 2022, in addition to its first EDV purchase from Amazon. However, continued chip shortages and supply chain issues have ramped up manufacturing challenges.
As a result, Rivian postponed the R1S’s introduction and reduced its planned manufacturing goal of 50,000 cars in 2022 to 25,000 earlier this year. That’s also why Ford, another key investor, abandoned its highly monitored efforts to produce an electric vehicle with Rivian in November.
Rivian, on the other hand, recently formed a joint venture with Mercedes-Benz to co-develop electric vans. This recent agreement is a significant vote of confidence in Rivian’s capabilities and may persuade other manufacturers to form similar EV agreements with the business in the future.
Cash Flows and Values for Rivian
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