In this video, I will be talking about Rivian (RIVN -3.51%) and why although the stock is down 55%, it is still not a buy right now. You can find the video below, but here are some of the highlights.
- Some key highlights from Rivian's latest quarterly earnings include 83,000 preorders in the U.S. and Canada after pricing adjustments. That's 30,000 vehicles more than the reported number at the end of October 2021.
- The company produced 1,015 and delivered 920 vehicles for the full year of 2021. As of March 8, it has produced 1,410 vehicles in 2022 and 2,425 vehicles since the start of production. The goal for 2022 has been reduced to 25,000 instead of 40,000 as a result of continuous supply chain challenges.
- Raw materials prices have gone up even higher, which means Rivian will have to absorb higher costs instead of raising prices again.
- Mizuho analyst Vijay Rakesh cut Rivian's price target to $100 a share from $145 a share in early March. He now sees the stock rising to $95 a share and has kept a buy rating on the stock.
- Total operating expenses (OPEX) were $2.07 billion, and R&D expenses were $725 million. To compare, Tesla's OPEX last quarter was $2.2 billion and R&D expenses were $740 million (a record high).
- Rivian CFO Claire McDonough said Rivian plans to deliver 10,000 delivery vans to Amazon in 2022.
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*Stock prices used were the closing prices of March 25, 2022. The video was published on March 28, 2022.
