Written by Cláudio Afonso | Info@claudio-afonso.com | LinkedIn | X
Truist Securities analyst Jordan Levy lowered on Wednesday the firm’s price target on the EV startup Rivian while maintaining the Hold rating. The company will report its first quarter Earnings Results on May 7 after the market closing.
Levy said he expects “few surprises” in the earnings results adding that the firm expects the full year production guidance to be reiterated.
“With the first quarter production/delivery numbers previously reported, we expect few surprises in RIVN’s 1Q report,” the analyst said.
Truist Securities expects the management to give further details on the cost reduction plan for the rest of the year.
“With an extended shutdown currently ongoing to roll out new technology upgrades/other plant upgrades at Normal, we would anticipate FY24 guidance to be reiterated as we look for additional details surrounding incremental cost-downs/other drivers of margin improvement heading into the second half of the year,” the analyst wrote.
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Levy concluded saying “the key focus for Rivian remains demonstrating progress toward pushing gross margins positive exiting the year”.
Rivian‘s plant in Illinois was closed from April 5 until yesterday amid the implementation of new technologies and production methods aimed at substantial cost reduction. The factory re-opened today and an employee from the manufacturing team has shared what we can expect after the upgrade.
Amid updates on the revamped R1 models, new robots, and quality improvements, it was mentioned that “lots of things still need to happen” to start production of the recently unveiled R2. However, “the wheels are definitely in motion to get it to market as soon as possible,” the Rivian employee added.
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The electric vehicle (EV) manufacturer Rivian sent out last week a survey to all reservation holders of its recently unveiled R2 about which configurations, specs, and features customers and potential customers would prefer.
The company has recently expanded its leasing program to include four additional U.S. states, granting access to the $7,500 EV tax credit. The addition of Maryland, New Mexico, Virginia, and Alaska brings the total number of states on the list to 30.
As initially reported by EV, the company started recently a new round of layoffs to “support our goal to be gross margin positive by the end of the year,” as said in an email to Reuters.
Written by Cláudio Afonso | Info@claudio-afonso.com | LinkedIn | X
NEVER MISS AN UPDATE
The post Trust Securities Adjusts Rivian’s Price Target Ahead of Earnings first appeared on EV.