Today we are going to talk about Rivian stock price prediction. on this page, you will find the complete information about Rivian stock price forecast We trust you will find this article to be helpful, and we ask that you please share it with others.
Rivian Automotive Inc Overview
Rivian is an electric vehicle manufacturing company in San Jose, California which was founded in the year 2009. The company’s CEO Robert Scaringe has the motive to offer an environment-friendly transportation medium.
Currently, the company is selling R1S SUV and R1T pickup trucks that carry five passengers. Moreover, the brand sells accessories and provides ancillary services as well. And the company sells its products in the consumer and commercial markets. Whereas Rivian has a manufacturing capacity of 2.6 million square and stretches to the additional location of England, California, and Michigan.
| Valuation Measures | Value/Price |
| Market Cap | 29.30 B |
| Enterprise Value | 16.04 B |
| 52 Week High | 179.47 USD |
| 52 Week Low | 19.25 USD |
| Price/Sales (TTM) | 57.01 |
| Price/Book (MRQ) | 1.7 |
| EPS(TTM) | -1.89 |
| Enterprise Value/Revenue | 31.21 |
| Enterprise Value/EBITDA | -2.47 |
| 50/200 Day Moving Average | $33.93/ $38.13 |
Data from the above table was taken on 06/11/2022 from Yahoo Finance. If you want to see live data then check out here.
Rivian has collaborated with Amazon.com to develop a final-mile delivery van solution. Wherein Amazon has a 17.7% stake in the company. Additionally, the initial preorder for the vehicle production is 1,00,000.
Rivian Management Details
The management of the company is considered weak as the average management tenure is 0.8 years which suggests it’s a new team. Whereas Rivian’s board is also not experienced as their average tenure is 2 years only.
Rivian IPO Launch
The company got listed on Nasdaq in November 2021 with an initial public offering of $78 per share. Rivian is listed on Nasdaq and falls under the industry of automobile manufacturers. And Rivian Automotive has the trading symbol of RIVN.
With the launching of the IPO by the company, the share price got increased due to the excitement amongst investors regarding the innovative electronic vehicle. Thus, IPO peaked at $170 from the initial price of $78. Hence, it surged to almost double.
But with Amazon’s buying of truck decision, the share price of Rivian slipped below its IPO price. And Rivian is currently trading at $31.92.
Rivian Current Scenario
Rivian has failed in delivering the expected number of vehicle deliveries in the recent year. Because the cost of production increased due to the hike in the price of materials for manufacturing. The company is facing production difficulties due to supply chain management problems and inflationary pressures.
Furthermore, the company increased the price of the vehicle and the investor sentiment got reduced leading to the poor reputation of the company. The exciting product launch of the R1T pickup truck was good news for the company. But the poor production capacity has questioned the company’s profitability.
Thus, the low profits can be seen in the financial report. Henceforth, due to low earnings, the accelerated growth of the company will be unprofitable. While the July report 2022 states that Rivian has laid 6% of its staff.
The future of Rivian depends upon its relationship with Amazon and this will likely predict the future of Rivian.
Challenges for Rivian Automotive
Market Competition
The two biggest competitors of Rivian are Ford and Tesla. Whereas the electric car market is crowded and there are giants in the market which are giving tough competition to Rivian in terms of sales and production.
Expensive Product
Additionally, after the launch of the product, the car would be expensive as the expected price of the car would be between $68,000 to $70,000. Hence, this is the biggest concern for the shareholders.
Market Sentiment
Rivian products have not reached the market yet. And it hasn’t sold any cars. Thus, there is no information about the consumer review and its performance. Likely, the anticipated risk for the company is high. Furthermore, the target market for Rivian is receptive or low.
Financial Health of Rivian Automotive Inc.
The latest financial reporting of the company for June 30, 2022, states the company has a negative Earning Per share of – 7.64%, a Gross Margin of – 325.10%, a Net Profit Margin of -1, 361.67%, and a Debt Equity Ratio of 7.3%, Return on Capital Employed -35.4%.
But Rivian has more cash which means the cash runway is good. Additionally, the company has a free cash runway of at least 3 years. According to current financing, Rivian is valued at $27.6 billion. Rivian has the highest market capitalization Rather it’s predicted that the price of the stock would be around $147.
RIVN’s short-term assets of $15.7B exceed its short-term liabilities of $1.8B which is a favorable sign for the company. As the company has not released any recent payouts, it’s difficult to predict the company’s dividend yield ratio.
The Return on equity is – 27.21% which is low due to the company’s low efficiency. Thus, it’s also expected that the company will generate a low return on assets of -22.76%.
Lastly, due to insufficient information, the earnings and revenue for the past 5 years cannot be observed.
Short-Term Rivian Stock Forecast
As we all know that we call the period up to 1 year a short-term period. When we look at the history and financials of Rivian, we do not get any idea of the price rise in the short-term period as its stock price is continuously going down. so this stock can be risky in the short-term period.
Rivian Stock Price Prediction 2022
There has been a considerable drop in the stock price of over 62% in 2022. Thus, this stock is a red flag. The 12-month price forecast states that the high estimate for the stock is 83.00 whereas the low is 24.00 and the median estimate is 57.81.
Rivian Stock Price Prediction 2023
Within the span of 1 year, Rivian is not going to have much price rise. Thus, for the year 2023, the forecast for Rivian stocks states that the share price might be high to $83 to $27 low. Additionally, the analysts are of the view that negative volatility in the stock price of Rivian can be observed in the year 2023.
Long-Term Rivian Stock Forecast
when we talk about long-term rivian stock price forecast (2025,2030,2050) then it can be a good buying option for you. Which is mentioned below in detail.
Rivian Stock Price Prediction 2025
A cash burn of approximately $21 billion is expectedly to happen in the year 2025. Hence, the stock prices are likely to fall. And as the market for electronic vehicles is highly competitive, Rivian needs to focus on its manufacturing capacity. Moreover, the span of 3 years is less time to comment on the price hike of Rivian stock.
Rivian Stock Price Prediction 2030
Considering the earnings and savings rate of the company Rivian will continue to face losses in the coming next 3 years. While focusing on the earnings and market rate, the company will continue to remain unprofitable for the next 3 years. But Rivian’s revenue can grow at a faster pace when compared with the US market. Therefore, Rivian is an investment for the next 10 years or more.
Rivian Stock Price Prediction 2050
The electronic vehicle market is constantly evolving and a lot of potential can be observed in this sector. The automobile industry with grow by 37.2% with profitable companies. As far as Rivian Automotive is concerned, when this company will reach 2050 then it will be more than 20 years old, then it will also increase the company’s trust and brand value in the people, which will definitely benefit the company from the growth of the electric automobile industry. Thus, the forecast for the span of more than 20 years can be favorable.
Bull Scenario of Rivian
Being the first manufacturer of an electric pickup truck. Rivian has bagged the collaboration with Amazon. Wherein the company has to deliver 1,00,000 pre-ordered electric vans. Hence, Rivian has a long way to go.
Bearish Scenario of Rivian
With the cash burn situation with Rivian, the company had to face immense pressure and difficulty in manufacturing the decided target of electric vehicles. On the contrary, Tesla and fords are much ahead of Rivian in manufacturing their electric vehicles.
Rivian could only produce 8,000 electric vehicles by June 2022, whereas Tesla reached the mark of 2,54,000 in the 2nd quarter of 22, and Ford reached around about 4 million. Thus, considering the present condition, Rivian has to prove its dominating presence in the market with a good number of productions.
Is Rivian a good stock buy or not?
Rivian is facing a situation of cash burn, as there’s no increase in sales and production. And there’s no good revenue to justify the boost of profit in the future. So, the company can run out of cash.
But with the multiple analysts reporting some are of the view that Rivian is a good stock buy whereas some say it’s a good stock to hold and for some the stock can be sold.
As the future of Rivian looks promising. Therefore, few analysts recommend that the stock is a good buy option. With its innovative product offering and good business initiative, Rivian is expected to prove great results in the coming 5 to 10 years. Therefore, it’s better to hold the stock.
Conclusion
Rivian Automotive Inc (NASDAQ: RIVN) has the advantage of Amazon’s collaboration which is the biggest e-commerce site in the world. Whereas whether the stock is a good buy for you or not depends upon your risk capacity, the size of your portfolio, and your investment goals.
Do consider the risks and market conditions before making any sensible decision for the investment in the stock. Thereby, we recommend doing your own research before investing.
FAQ: People also ask:
should i invest in Rivian stock ?
The answer of this question is that whether you should or not it depends on various personal things like what is risk appetite, your portfolio size, your financial goals your experience in the market and more. Kindly make a sensible decision as per your own research.
What is the expected stock price rise of Rivian in the future?
As per the expert analysts, the average stock price target is $70.47, whereas the highest price target forecast is $170 and the lowest stock price forecast is $24. Meanwhile, the stock price can go up to $200 as well.
How many employees are there in Rivian Automotive?
There are currently 10,422 employees in Rivian Automotive.
Who are the venture capitalist firms of Rivian?
Rivian venture capitalist firms of Rivian are Fidelity Management & Research, T. Rowe Price, Soros Fund Management, Blackrock, and Baron Capital.
What was the IPO of Rivian Automotive?
Rivian Automotive offered IPO in November 2021 and issued 153,000,000 shares at $57.00-$62.00 per share.