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Is it better to take again or a loss on Rivian Automotive stock now and wait? What are the analysts’ predictions for Rivian Automotive? Using historical information on Rivian Automotive stocks, we forecast Rivian Automotive’smarket performance using neural networks. In addition, when forecasting, technological and analytical techniques are used, as well as global geopolitical and news factors. The table, graph, and text information below display the stock forecast outcomes for Rivian Automotive. Rivian Automotive stock forecasts are updated once per day based on the previous trading day’s closing price. Rivian Automotive analysts have set a minimum target price of $53.06. Today’s resistance level is the 200 Day Moving Average (43.23 $). The support level (35.19 $) is the 50 Day Moving Average.
What Exactly Is Rivian?
Rivian is a California-based electric vehicle manufacturer founded in 2009 by Robert “RJ Scaring” Scaring. Amazon currently sells its R1S SUV and R1T pickup truck. It also sells branded equipment and services. It also offers fleet service using which use the Rivian operating system. Rivian stock price forecast 2025 The company raised more than $13.5 billion in its IPO in 2021.
Is Rivian likely to succeed?
Rivian has created a distinct brand aimed at explorers and environmentally responsible customers. It is led by Robert Scaringe, a mission-driven CEO whose overall objective is to shift transport services to more sustainable options. The company has created an ecosystem of product lines that, in the future, could support a reliable income model. In addition to its primary vehicles, it has a trying-to-charge network and includes provisions. Rivian, on the other hand, may not have a significant competitive advantage. It currently lacks the funds to mass-produce vehicles and faces stiff competition from competitors such as Ford and Tesla.
High cash outflow
Automobile manufacturing is a capital-intensive industry that necessitates substantial cash reserves. While Rivian had $15 billion in cash at the end of the second quarter, it spent $1.6 billion in June to broaden its manufacturing capacity, resulting in an annual cash burn rate of $6.4 billion. In comparison, its sales in the second quarter of 2022 were only $364 million.
Rivian is expected to burn more than $20 billion in cash through 2025, implying that the company will need to secure financing by the end of 2023 or during the first half of 2024. Rivian will dilute shareholder wealth if it raises equity capital, while debt capital is expensive due to rising interest rates.
Vehicle production figures are an essential metric for automakers. Since the start of COVID-19, the world has experienced disruptions in supply chains due to lockdowns and labor shortages, affecting automakers’ production figures. Rivian had previously predicted that it would produce 25,000 vehicles in 2022. Its total vehicle productivity levels for the year’s first six months stand at 6,900. The EV company has reaffirmed its production forecast for 2022, but investors will be watching to see if these promises are kept.
What is the stock price forecast for Rivian?
The lowest 12-month price target for RIVN stock is $27, while the top price target is $147, as per Yahoo Finance data. The stock of Rivian has a 12-month target price of $147. Presently, 20 experts follow Rivian, with 13 advising “buy,” 6 advising “hold,” and 1 advising “sell.”
- Rivian stock price forecast 2023
- According to Morgan Stanley, Rivian’s stock price will hit $147 in 2023.
- Rivian stock price forecast 2024
- RBC Capital Markets is positive on the EV market and projects that the price of RIVN stock will rise to $165 by 2023, helped by tech giant Amazon.
- Rivian stock price forecast 2025
- According to Bank of America, the price of Rivian stock is predicted to be about $170 in 2025.
- Rivian stock price forecast for 2030
- Given the secular tailwinds affecting the EV vertical, Rivian shares have a good chance of exceeding $200 by 2030.
The positive case for Rivian stock
While Rivian’s losses increased in the second quarter, the company is taking steps to improve its cost structure despite having a war chest worth more than $15 billion. Rivian plans to start production at its second factory in 2024, with the R2 vehicle platform following in 2025.
Despite the fact that the macroeconomic environment is difficult, Rivian has confirmed its output guidance for 2022, which is quite impressive. To meet these targets, the company will need to triple manufacturing in the year’s final six months.
In the last three quarters, the R1 pickup truck and SUV presales have over doubled. While these orders are subject to cancellation, they demonstrate strong demand for Rivian’s EV lineup. Amazon also has which was before 100,000 vehicles, which will be produced between now and 2030.
Long-term investors should be pleased with Rivian’s order book for its personal and business vehicle lineup.
Rivian, like most other growth companies, is an elevated, heavy investment. If the company can successfully scale its company while optimizing costs and utilizing growth opportunities in the forthcoming decade, it will outperform the broader market returns. Rivian has vehicles for both the consumer and business markets, but given current market conditions, it still has much to prove.
QUE1 Is RIVN an excellent stock to invest in?
ANS1 Value Score of F suggests it is a poor choice for value investors. RIVN’s economic viability and economic expansion prospects show that it has the potential to underachieve in the market.
QUE2 What will the value of Rivian stock be in 5 years?
ANS2 According to the current stock price data analysis of Rivian Stock, RIVN is expected to reach a high of $125.75 in 5 years.
QUE3 Is it wise to buy Rivian stock?
ANS3 The value of Rivian stock is determined by your investment objectives and your assessment of the company. Rivian had a market capitalization of more than $28 billion as of May 3, 2022. Nonetheless, some Wall Street analysts believe Rivian’s valuation is too high.