Take Advantage of Recent Price Swoon in Rivian Automotive (RIVN) Before 2021 Price Rally!
Rivian Automotive Inc. (RIVN) is a pre-revenue company that has never generated any revenue, let alone profits or free cash flow. Despite this, the company's S-1 filing revealed that it had produced 12 vehicles in the third quarter of 2020 and sold them to employees. By the end of 2021, Rivian expects to produce 1,200 R1Ts (an electric truck), and by the end of 2023, it expects to produce 55,400 total vehicles. This could generate around $3.7 billion in revenue from now until the end of 2023 if they sell these vehicles at an average price of $67,500.
Despite Motley Fool advising investors to stay away from Rivian right now due to its lack of revenue, analysts such as Adam Jonas from Morgan Stanley are still high on the stock. He sees it as “the one” that can challenge Tesla and has set a $147 price target for it. Joseph Spak from RBC Capital Markets is even more bullish and believes that the EV stock's price could rally 69% up to $165 once supply chain issues have been resolved.
The 3rd quarter results will be released on December 16th and will provide further insight into Rivian's current plans for Europe after news of their factory broke out recently. It remains to be seen how much production issues will impact the stock but there is potential for it to rocket up to $165 with the resolution of supply chain issues. Investors should take advantage of the recent swoon in Rivian's stock price and buy shares at a sizable discount to their recent highs.
Rivian's stock has been volatile in the past few months, with its share price rising from $30 to a peak of $70 before dropping back down to around $50. This could be attributed to investors taking profits after the initial hype and excitement surrounding Rivian's S-1 filing. The company is still pre-revenue but it does have some potential catalysts that could drive up its stock price in 2021 such as their plans for Europe and resolving supply chain issues.
The EV market is expected to grow exponentially over the next decade so there are plenty of opportunities for Rivian if they can execute on their plans properly. Investors should keep an eye out for news updates regarding production numbers, European expansion, and other developments related to Rivian Automotive Inc (RIVN). With any luck, these will help propel RIVN’s stock higher in 2021!
Is Rivian stock a buy?
At this time, it is not recommended to invest in Rivian due to the company's lack of revenue and profits. However, analysts at Morgan Stanley are still high on the company and have given it a $147 price target.
What are Rivian's current plans for Europe?
Rivian has recently announced plans to open a factory in Europe, but further details about their plans have yet to be released.
What did the 3rd quarter results show?
The 3rd quarter results showed that Rivian had produced 12 vehicles, all of which were sold to employees. By the end of 2021, they expect to produce 1,200 R1Ts (an electric truck), and by the end of 2023, they expect to produce 55,400 total vehicles.
What is the current price of Rivian stock?
The current price of Rivian stock is around $97 per share. Analysts at RBC Capital Markets believe that the stock could rise up to $165 as supply chain issues are resolved.
How can I stay up-to-date with the latest Rivian Automotive Inc. (RIVN) stock news updates and financial information?
You can stay up-to-date with the latest Rivian Automotive Inc. (RIVN) stock news updates and financial information by subscribing to their Reddit page or following them on social media. Additionally, you can also sign up for their email newsletter to receive the latest news and updates.