Rivian’s stock kicked off the new year with a surge after the company reported better-than-expected EV deliveries for the fourth quarter of 2024. Rivian delivered nearly 14,200 electric vehicles in Q4, surpassing Wall Street estimates of 13,400. This brought its annual total to approximately 51,580 vehicles, aligning with the company’s guidance and restoring some investor confidence.
A Struggling Past
Despite this recent boost, Rivian’s 2024 performance was far from stellar. The stock closed last year down 40% and remains nearly 90% below its 2021 IPO peak of over $100 per share. The company has faced challenges including supply chain disruptions, competition from Tesla, and a shift in market sentiment away from EVs. These factors forced Rivian to implement aggressive cost-cutting measures, including multiple rounds of layoffs and component redesigns to reduce production expenses.
Signs of Recovery
The strong Q4 delivery numbers suggest Rivian may be emerging from its production woes. RBC Capital Markets analyst Tom Narayan noted that the issues affecting Q3 production appear to have been resolved. However, Narayan remains cautious, maintaining a Neutral rating on Rivian with a 12-month price target of $12. The stock was trading above $16 following the report.
Analysts Remain Divided
Despite the positive delivery figures, skepticism persists. CFRA analyst Garrett Nelson reiterated his Sell rating, citing the company’s ongoing financial struggles. Nelson set a price target of $8, emphasizing that Rivian’s bottom-line losses are likely to continue as it navigates a challenging market environment.
Investment Outlook
Rivian’s recent delivery numbers highlight its ability to overcome short-term production hurdles, but long-term challenges remain. Investors must weigh the potential for operational improvements against the company’s persistent financial losses and competitive pressures.
This article is not investment advice. Always conduct your own research or consult a financial advisor before making investment decisions.
