The mood was euphoric when Rivian Automotive took to the stock exchange floor in November 2021. At its Nasdaq debut, the shares of the manufacturer of electric vehicles rose by a whopping 50%, bringing the market valuation to more than USD 100 billion. In the meantime, disillusionment has set in and the stock market value has quartered in the wake of delivery problems. And yet this is not the end of the growth story, because recently the share price turned sharply upwards again after a sideways movement lasting several months.
There are tangible reasons for the comeback: The auto startup, which produces R1T pickups and R1S SUVs, delivered 12,640 vehicles in the second quarter. This significantly beat average estimates of 11,000 units. The company also produced 13,992 bodies at its Normal, Illinois, plant, up 4,597, or 59%, from the start of the year. Needham analyst Chris Pierce then drew a positive conclusion: "Rivian seems to be turning the corner, and its production target of 50,000 units for this year seems quite achievable after the quarterly numbers." Unlike its two competitors Lucid and Fisker, for example, which had to lower their targets after the first quarter, Rivian's management is in fact still sticking to its original forecast.
Compared to top dog Tesla, the fledgling e-car provider has also not had to boost sales with price cuts. The company is still confident that the high-quality equipment as well as the powerful batteries justify the chosen price structure. The latest sales figures support this view. In addition, the group stands out by developing its own drive unit. On the one hand, this reduces dependence on suppliers, and on the other, it lowers production costs.
In addition to the R1T pickup already mentioned and the R1S SUV, Rivian has another trump up its sleeve: an electric delivery truck. This e-truck, built exclusively for Amazon, has already been cruising the streets of the U.S. since last summer. According to the company, more than 3,000 vehicles are already in use. "Together, Amazon and Rivian have designed and produced a state-of-the-art electric vehicle from the ground up. It's unlike anything currently on the road," explains Neil Emery, Director Global Fleet & Product at Amazon. Now Rivian is bringing the delivery truck to Europe in a shorter and narrower version. Germany will be the first. More than 300 of the electrically powered delivery trucks will be launched in the coming weeks. In the long term, there should be many more. The e-commerce giant, which also holds a stake in Rivian, has ordered up to 100,000 e-vans by 2030.
Recently, the company's first-quarter revenue and earnings reports also gave cause for celebration. For the quarter ending March 31, revenues of USD 661 million were reported; Wall Street analysts had expected only USD 652.1 million. The quarterly net loss narrowed from USD 1.59 billion to USD 1.35 billion, or USD 1.25 per share. Investors will find out how the second quarter just ended on August 8. Earnings estimates in this regard vary widely. They range from USD -0.98 to USD -1.91 with a consensus of USD -1.42. Sales are expected to increase to USD 986 million according to the average forecasts. This would be a 49% increase over the previous quarter and as much as a 170% increase over the same period last year.
Now that it seems that the e-car manufacturer has mastered the production and supply chain challenges, several analysts have recently raised their price targets. In addition, the stock is among the most talked about stocks on the social media website stocktwits.com, where investors, traders and entrepreneurs exchange views. As far as Rivian's further price potential is concerned, however, the air seems to be getting thinner for the time being after the rally - the price shot up by two-thirds on a monthly basis alone. The mean price target of the analysts amounts to USD 25.50, which corresponds approximately to the current level.
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