Written by Cláudio Afonso | LinkedIn | X
Morgan Stanley analyst Adam Jonas lowered on Thursday the price target on Rivian shares by $1 to $16.00 after updating the firm’s model following the second quarter results published on Tuesday. The analyst maintained an Overweight rating on the stock.
Earlier this week, also UBS, Wells Fargo, and Needham lowered their price targets for the shares of the Irvine-based electric vehicle maker.
In mid-July, the analyst raised the firm’s price target from $13 to $17, stating that Rivian has a stronger potential for success as an automotive supplier and partner rather than as an independent company.
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“Rivian has a greater chance of success as an auto/tech supplier than as a manufacturer,” Jonas stated a few weeks after the company announced the joint venture with the German giant Volkswagen Group.
Rivian CFO Claire McDonough, revealed during the earnings conference call late Tuesday the company will do a second pause in Normal one year from now to prepare for the mass production of the cheaper, smaller R2 model.
Rivian reported $1.16 billion of revenue while negative gross profit increased year over year to $451 million from $412 million. The company expects to reach “modest gross profit” by the last quarter of the year.
In a statement, Rivian said that the losses increased due to a lower average selling price, purchase commitments, among other reasons.Earlier this week, Rivian has begun deploying its latest over-the-air (OTA) software update, version 2024.27, for the second-generation R1 models (R1S and R1T).
The update brings access to new apps such as Apple Music and Audible, a 60-Day Trial of Connect+ and several enhancements.
Written by Cláudio Afonso | LinkedIn | X
Never Miss an Update on Rivian
The post Morgan Stanley Lowers Rivian Price Target Following Q2 Results first appeared on EV.