It hasn’t been a good start to 2024 for Rivian (NASDAQ:RIVN), as shares of the electric vehicle company are already down more than 26%. However, Rivian just made it easier to buy one of its vehicles.
Starting today, customers can now purchase several versions of the R1S SUV through a leasing program, such as the Dual-Motor Large or Max pack. Customers in 15 U.S. states are eligible to participate in the program. More states will likely be eligible for the program in the future.
“Very well qualified lessees who take delivery on or before 1/31/2024 can lease a new Rivian R1S Adventure Package for 36 months with 30,000 total miles for $1,169/month,” said Rivian.
RIVN Stock: Rivian Adds Lease Options for R1S SUV
Rivian opened up its leasing program for the R1T pickup truck back in November. Customers in 14 U.S. states were eligible to participate in the program.
On top of that, customers purchasing a R1S or R1T through a lease are eligible for the $7,500 federal clean vehicle tax credit.
A lease provides customers with a flexible payment option and should help drive sales. During the fourth quarter, Rivian produced 17,541 vehicles and delivered 13,972 of them. Deliveries fell slightly short of the Wall Street estimate for 14,000 vehicles and declined by 10.2% quarter over quarter. At the same time, production increased from 16,304 vehicles during the third quarter.
The fourth-quarter numbers brought full-year production and deliveries to 57,232 and 50,122 vehicles, respectively. Rivian had previously guided for 2023 production of 54,000 vehicles and beat its estimate by about 6%.
Now, shareholders are anxiously awaiting Feb. 21, as that is when the company will report its fourth-quarter earnings. Analysts are forecasting revenue of $1.256 billion, signaling yearly growth of 89.37%, and a GAAP EPS loss of $1.52.
Earlier this week, Deutsche Bank analyst Emmanuel Rosner lowered his RIVN price target to $19 from $29. Rosner expects 65,000 deliveries this year and believes that Rivian will run into issues with ramping up its production. His price target is based on a 1.2x multiple of 2026 expected sales, which was lowered from 1.8x.
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.
