From Nasdaq: 2025-02-08 11:30:00

Rivian Automotive (NASDAQ: RIVN) has seen its shares plummet by 90% since going public in 2022. Despite positive reviews for its electric vehicles, the company faces challenges with slow growth and cash burn. The upcoming fourth-quarter earnings report will be crucial for investors to watch.

Rivian CEO Ryan Scaringe aims to achieve a modest gross profit in Q4 2024 by reducing costs and leveraging non-automotive growth drivers like green car credits. This turnaround would mark a significant improvement from the $1 billion loss in the same period last year.

Top-line growth is vital for Rivian’s success, as it delivered only a slight increase in vehicle sales in Q4. The company’s reliance on selling regulatory credits poses risks, and scaling up its business model will be crucial for profitability.

Rivian’s future hinges on new products like the affordable R2 model and partnerships like the $5.8 billion venture with Volkswagen. These initiatives could inject much-needed cash and drive growth for the company.

Investors are eager for Rivian’s Q4 earnings, anticipating a shift to gross profitability. However, concerns over slow growth and reliance on regulatory credits may deter potential buyers. The success of new vehicle programs will determine Rivian’s long-term prospects.



Read more at Nasdaq: Is Rivian Stock a Buy Before Feb. 20?