Rivian Automotive (RIVN, Financial) recently reported third-quarter earnings that fell short of expectations, leading to mixed reactions from Wall Street analysts. The company cited a more challenging consumer environment and ongoing supply chain issues as significant hurdles.
In its earnings call, Rivian's management highlighted collaborations with major automotive players like Volkswagen and projected increased vehicle deliveries to Amazon in the fourth quarter. They also foresee new commercial van deals by 2025 and are actively seeking suppliers that won't be affected by high tariffs.
Following the earnings report, Bank of America downgraded Rivian from "Buy" to "Neutral." Analyst John Murphy pointed out that turning gross margins positive is crucial, although this could be influenced by regulatory credits, which may be at risk under the Trump administration. Murphy's team anticipates only modest delivery growth by 2025.
Wedbush Securities maintained its "Outperform" rating on Rivian. Analyst Dan Ives praised the partnerships with LG and Volkswagen, considering them essential to Rivian's battery production and capital strategy. However, he cautioned that Rivian needs to make significant progress to regain Wall Street's trust in the short term, despite confidence in its long-term vision.
Rivian reported third-quarter revenue of $874 million, a 34.6% decline year-over-year, missing the market expectation of $1 billion. The company reported a loss per share of $1.08, compared to the anticipated $0.96 loss. Rivian reaffirmed its full-year delivery target of 50,500 to 52,000 vehicles.
As of the latest report, Rivian's pre-market stock price increased by 0.50% to $10.1.
