Rivian Automotive Stock News

Rivian Automotive Inc (NASDAQ:RIVN) has temporarily halted the production of its electric delivery vans for Amazon due to a parts shortage, adding to the supply chain challenges the electric vehicle (EV) maker has faced. The pause began earlier this month at Rivian's plant in Normal, Illinois, according to reports.

Rivian reported second-quarter earnings in early August.

Rivian has temporarily suspended production of its commercial delivery vans used by retail giant Amazon.com due to a shortage of parts, a spokesperson for the electric vehicle manufacturer said on Friday.

EVgo is posting strong growth and recruiting high-end talent. QuantumScape's solid-state batteries could be game changing.

Rivian beat Q2 expectations last week, generating better-than-expected earnings and top-line results. The company narrowed its gross losses in the second quarter, with a significant improvement in the gross margin per unit metric. RIVN is currently undervalued compared to other U.S. electric vehicle manufacturers, making it a strong investment opportunity with high potential upside.

Rivian's latest quarterly results didn't impress investors. The company has lowered production costs and retooled its vehicles to save money.

To understand the mainline concern about electric vehicle manufacturer Rivian Automotive (NASDAQ: RIVN ) and why retail investors shouldn't immediately jump on the technically bullish sentiment in the options market comes down to the classic cost-benefit analysis. Yes, RIVN does look more attractive thanks to its Volkswagen (OTCMKTS: VWAGY ) deal.

While Rivian is making progress on cost cutting efforts, overall growth is rather muted at the moment. The company burned over a billion dollars in cash during Q2, leaving its net cash pile at its lowest levels in years. With the potential for another capital raise on the horizon, investors may want to consider selling this premium valuation name for now.