2024-04-17 10:54:41 ET
Summary
- Rivian Automotive, Inc. stock has seen deep losses this year, down nearly 60% year to date, but its lower valuation makes it an appealing investment.
- Rivian stock has tanked on both lower production guidance and deeper price competition from Ford this year.
- Still, the company is only expecting flat y/y production because of a planned factory shutdown, which will improve production rates and materially raise gross profit per unit.
- Despite current losses, Rivian has ample liquidity with over $7 billion in cash and is expected to achieve gross margin profitability by the end of 2024.
Amid general market euphoria this year, perhaps no sector has been as badly damaged as the electric vehicle ("EV") sector. Stemming from concerns over weak demand, macro pressures, soft signals from China, and ramping competition among vehicle makers, every EV stock has seen deep losses this year....
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Rivian: A Strong Buy At All-Time Lows (Rating Upgrade)