πππOn Thursday $Rivian Automotive, Inc.(RIVN)$
Investors seem to be worried that lower priced electric trucks from Ford could put more competitive pressure on Rivian's business. Shares of Rivian dropped 6.8%, a new record low. Rivian shares are now down by 54% year todate and in 2023, Rivian is down by 32%. Rivian shares have now closed below USD 10.
Rivian's R1T vehicle starts at USD 69,900 while its R1S begins at USD 74,900. The offerings from Rivian are not perfectly comparable to Ford 's electric pickups because Rivian' s trucks are presented more as adventure oriented luxury pickups and SUVs with features geared towards outdoor activities.
But as EV manufacturers have to face cooling demand and growing competition, the spectre of more aggressive pricing from a competitor is enough to make Rivian's investors nervous.
Performance wise Rivian has already dropped 54% year todate and in 2023, Rivian is down 32%.
Nonetheless Wall Street Analysts are still bullish on Rivian with a Buy rating, Target price of USD 17.67, an upside potential of almost 90%.
Fortunately for Rivian , it has the backing of Amazon. In 2019, Amazon has invested USD 1.345 billion in Rivian. The 2 companies have entered into an agreement that Rivian will supply Amazon with battery electric delivery vans.
Rivian has revealed 2 new EV models the R2 and R3 in March which are smaller and cheaper. The R2 is priced at USD 45,000 with expectations it will also qualify for the USD 7500 Inflation Reduction Act tax credit. Production is expected to begin in 2026 with deliveries beginning in 1st half of 2026.
Rivian shares price will be volatile in the short term but if it successfully launch its new models, Rivian may be able to increase its revenue.
Rivian is a stock that requires lots of patience and time in order to realise its full potential.
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