Why Is Rivian (RIVN) Stock Down Today?

Shares of Rivian (NASDAQ:RIVN) are in the red after the company released its Q1 delivery and production figures. Indeed, the electric vehicle (EV) maker reported producing 2,553 vehicles and delivering 1,227 vehicles during the quarter. The vehicles were all produced at Rivian’s facility in Normal, Illinois. Rivian stated that the figures are “in line with the company’s expectations” to produce 25,000 vehicles in 2022. However, not everyone is convinced of that. Here’s what you should know about RIVN stock today.

Rivian sign outside the company's HQ in Silicon Valley
Source: Michael Vi / Shutterstock

Why Is RIVN Stock Down Today?

The weakness in the S&P 500 and Nasdaq Composite is factoring into RIVN stock’s decline today. However, investors also seem dissatisfied with Rivian’s Q1 production and delivery numbers. In order to reach the annual production goal of 25,000 vehicles, Rivian must ramp up production significantly for the rest of the year. Using the Q1 production figure as a proxy for run rate, Rivian would only produce 10,212 vehicles for the year.

Furthermore, Rivian cut its 2022 production target from 50,000 to 25,000 last month due to supply chain challenges. The company’s production facility in Illinois has an annual capacity of 150,000 vehicles, which Rivian intends to increase to 200,000 by next year. Additionally, Rivian is working on a facility in Atlanta. The facility is slated to open in 2024 and will produce battery cells as well.

Several Wall Street analysts lent their thoughts on Rivian’s Q1 figures. Let’s take a look.

Analysts Comment On Rivian’s Q1 Numbers

  • RBC Capital analyst Joseph Spak reiterated his price target of $100 after reviewing Rivian’s Q1 figures. The analyst noted that the production figure suggests that during the last 23 days of the quarter Rivian was producing 348 vehicles per week. Spak’s proprietary data showed that Rivian was producing around 320 vehicles per week year-to-date as of March 8. As a result, this shows that production is ramping up. In addition, Spak has a 2022 production target of 25,500 vehicles and a delivery target of 23,700 vehicles.
  • Baird analyst George Gianarikas reiterated his price target of $84 after reviewing Rivian’s Q1 figures. The analyst was “encouraged with stabilizing expectations” after earlier production challenges that Rivian experienced. Gianarikas was also impressed with the production ramp-up, despite supply chain issues.
  • Finally, Bank of America analyst John Murphy lowered his price target from $140 to $100 in light of headwinds in the automobile industry and supply chain issues.

On the date of publication, Eddie Pan did not hold (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.


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