Rivian's Autonomy+ Could Improve Margins But Will Face Tough Competition, RBC Says

MT Newswires Live12-13

Rivian Automotive's (RIVN) Autonomy+ driver-assistance package could improve margins over time, but the company will compete with established Level 2+ systems like Ford's (F) BlueCruise, General Motors' (GM) SuperCruise, and Tesla's (TSLA) Full Self-Driving, RBC said in a note.

The brokerage said Thursday that Rivian's Autonomy-related revenues are "unlikely to materialize in time to address near-term funding challenges," adding that the company may require additional financing by 2028.

As Rivian rolls out its R2 platform, targeting a lower price point could increase market reach, the R1 platform's struggles with profitability despite being nearly double the price of the R2 raise concerns, RBC said. The expiration of IRA tax credits could further weigh on demand and margins, RBC added.

The firm rated Rivian as sector perform with a $14 price target.

Price: 18.97, Change: +2.54, Percent Change: +15.43

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