Rivian Automotive reported better-than-expected first-quarter vehicle deliveries and doubled down on its full-year production goal Tuesday. RIVN shares fell Tuesday.
Rivian, based in Irvine, Calif., announced Tuesday that vehicle deliveries in Q1 totaled 13,588 while it produced 13,980. For 2024, Rivian also reaffirmed previous guidance of producing 57,000 vehicles.
Ahead of Tuesday's release, analysts expected Rivian to deliver 13,000 units in Q1. On Feb. 21, Rivian predicted that 2024 production would remain flat compared with 2023 while consumer and commercial vehicle deliveries will to grow by low single-digits in 2024.
The carmaker also forecast that vehicle deliveries in Q1 2024 would be about 10%-15% lower than in Q4 2023, which totaled 13,972. However, Rivian's Q1 deliveries declined only 3%.
Rivian stock dropped 5.2% to 10.51 during stock market action Tuesday. On Monday, RIVN shares advanced 1.3% to 11.09.
Rivian Stock: New Product Line And Funding
The EV startup unveiled the R2 — its smaller, cheaper, next-generation vehicle and platform — on March 7. The vehicle is priced at an estimated starting price of $45,000 with expectations it will also qualify for the $7,500 Inflation Reduction Act (IRA) tax credit.
The vehicle had been planned to be produced at Rivian's new factory in Georgia. However, the company halted construction of its $5 billion factory and is opening an R2 production line at its Illinois plant. Production of the R2 platform is expected to begin in 2026 with the first deliveries set for the first half of 2026.
Rivian also announced the R3, a more compact crossover style vehicle that uses the R2 platform, and a high-performance R3X offering. The company did not mention pricing or delivery estimates for the R3 or R3X. Rivian did say the R3 will be at a lower price point than the R2 and that deliveries for the R3X will begin after the R2.
Within 24 hours after the launch, Rivian said it received more than 68,000 reservations for the R2.
RIVN shares jumped on positive sentiment around the EV startup's R2 and R3 vehicle reveal event. However, questions remain whether the company can bring its new product line to market without help amid waning EV demand.
After the event, Morgan Stanley analyst Adam Jonas wrote that the R3 reveal "stole the show." However, the analyst also voiced caution.
"While Rivian excited the market with the unveil of its next 3 years of new product pipeline, investors may also want to contemplate the potential risks of showing too much," Jonas said.
The analyst added that potentially just as important as the new products was the decision to pause its Georgia plant plans, which should save around $2.25 billion in capital spending. However, Jonas also wrote that he does not believe Rivian can bring its new products to the market by itself.
Rivian's Cash Question
Rivian's product launch came after it announced on Feb. 21 a loss of $1.36 per share in Q4 with sales doubling to $1.31 billion. Wall Street expected a loss of $1.35 and revenue totaling $1.28 billion. The carmaker also said it was laying off 10% of its salaried workers.
Tesla Chief Executive Elon Musk posted on X, formerly Twitter, late on Feb. 21 that based on Rivian's quarterly cash on hand, the company could go bankrupt in around six quarters.
Chief Financial Officer Claire McDonough told investors on the Q4 earnings call that Rivian remains "confident that our cash, cash equivalents and short-term investments can fund our operations through 2025."
"We aim to maintain a strong balance sheet position by continuing to drive cost efficiencies and improve our vehicle unit economics, while opportunistically evaluating a variety of capital markets available to Rivian ranging across the capital structure," McDonough said.
Rivian stock ranks ninth in IBD's Automakers industry group. RIVN has a 20 Composite Rating out of 99. Additionally, the stock has a 7 Relative Strength Rating and its EPS Rating is 40 out of 99.
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