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Rivian (RIVN) seen as “one of the core EV players over the next decade,” says analyst

EV maker Rivian (RIVN) is seen as “one of the core EV players over the next decade,” according to Wedbush Analyst Dan Ives.

Rivian shattered analyst expectations in the second quarter, delivering 12,640 vehicles (analysts were forecasting around 11K), up 50% from the previous quarter.

While production continues climbing, with nearly 14K EVs built during the period, Rivian’s CEO RJ Scaringe highlighted the company’s improving profitability and capital efficiency.

As Rivian builds more vehicles, the company is enhancing its ability to optimize plant overhead and manufacturing operations. By adding in-house components like its new Enduro drive trains and LFP battery packs, Rivian is reducing the costs of each vehicle produced.

For example, Rivian’s gross profit per vehicle improved by $35,000 in Q2 compared to the first quarter. Rivian’s gross loss per vehicle is now (-$32,595) compared to (-$67,329) in Q1 and (-$157,000) last year.

Due to the improvements in Q2, Rivian raised its annual production guidance by 2,000, with a new goal of building 52,000 vehicles by the end of the year, more than doubling from last year (24,337).

Rivian R1S (Source: Rivian)

Will Rivian be a core EV player over the next decade?

The improvements were enough for Wedbush Analyst Dan Ives, known for his Tesla coverage, to say he sees Rivian as “one of the core EV players over the next decade.”

Ives said (via Investors Business Daily) that the EV maker took “another step in the right direction” after releasing second-quarter results this week. He added that “demand looks strong” and “visibility is improving into 2024.”

Rivian dual motor R1T (Source: Rivian)

After Rivian topped delivery and production estimates in July, the analyst raised his price target from $25 to $30 per share.

In a separate interview with Bloomberg TV, CEO RJ Scaringe, said, “The focus of the business is incredibly dialed in on driving up production and driving down cost,” adding, “We have a very clear line of sight” to profitability.

Scaringe said he doesn’t see the need to raise capital before the end of 2025, despite several big projects coming up. For example, Rivian is opening a new $5B facility in Georgia, where it will build its R2 products.

Rivian (RIVN) YTD stock chart (Source: TradingView)

Following a three-month rally, Rivian stock is down 16%. Although share prices are still up 25% in 2023, Rivian’s stock is still down 87% from its all-time highs set shortly after going public in November 2021.

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Avatar for Peter Johnson Peter Johnson

Peter Johnson is covering the auto industry’s step-by-step transformation to electric vehicles. He is an experienced investor, financial writer, and EV enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is a significant reason he pursued a career in investments. If he isn’t telling you about his latest 10K findings, you can find him enjoying the outdoors or exercising