You would think investors in Rivian Automotive (NASDAQ:RIVN) should be smiling ear to ear after the company’s R1T truck won the 2022 MotorTrend Truck of the Year award earlier this week. However, shares of RIVN stock are down 4% over the past week. Today, the electric vehicle (EV) received another prestigious recognition in the automative world, the Edmunds Editor’s Choice award.
So, what makes Rivian’s R1T pickup truck stand out from the crowd? And why isn’t RIVN stock celebrating these big wins?
In Edmunds’ 2022 review of the R1T, the publication rated the pickup truck 8.4/10. Edmunds emphasized the truck’s spacious cabin, the ability to accelerate quickly and ease of driving. The R1T is Rivian’s first vehicle to market, and it will be followed by the R1S, which is an SUV version of the R1T. The automotive reviewer added:
“As you might imagine, the R1T is no ordinary pickup. For one, this all-electric machine has four motors, one for each wheel. And its performance specs are impressive. It’s built to tow as much as 11,000 pounds. And when it is empty, it can accelerate to 60 mph in about 3.5 seconds or cruise more than 300 miles on a full charge.”
With the recent awards in mind, investors are wondering why the stock has declined. Here’s what to keep in mind.
Rivian Stock Falls After Receiving Edmunds EV Award: What to Know
- Despite the awards, Rivian is still a $0 revenue company based on Q2 trailing-12-month (TTM) figures with a market capitalization of $97 billion. The EV company reported $0 in revenue for the fiscal year ended Dec. 31, 2020 as well. Shares of RIVN stock are not cheap in any way.
- Rivian reports Q3 earnings tomorrow after the market close, so investors will want to examine the report closely. Analysts are expecting $1.02 million in revenue and earnings per share (EPS) of -$7.72. This will be Rivian’s first earnings report since its initial public offering (IPO) in November.
- Additionally, shares may be declining this week due to investors anticipating the Q3 earnings report and the potential effects it could impose on the stock.
- Price targets on Wall Street range from a low of $94 to a high of $170. The average price target is $134.67, so it seems the majority of analysts are bullish on the EV company.
- As of Oct. 31, Rivian had produced 180 R1Ts and delivered 156 of them. However, most of the deliveries were received by Rivian employees. Deliveries for the R1S SUV are expected to start in the spring of 2022.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.