Rivian Automotive Stock News

Rivian is seeing stagnant delivery growth as it moves to new product models. The company is burning a lot of cash and just signed a deal with Volkswagen.

Rivian Automotive has made significant progress in the EV space, with a recent rally in stock price due to a deal with Volkswagen AG. The EV company is focused on turning limited production into a profitable business, with plans to launch R2 and R3 models in early 2026. The VW investment of up to $5 billion positions Rivian for significant growth and profitability in the future.

Rivian's total cost of drive units has fallen significantly. Management expects a 20% material cost reduction in the fourth quarter.

Rivian's Q2 may be the most important quarter in its history due to the introduction of its next-gen vehicles and partnership with Volkswagen. However, the impact of those events has not yet shown up in its results.

Some of the best electric vehicle (EV) stocks seem to be running out of steam in August. Undoubtedly, the broader tech market sell-off has been quite harsh among EV plays, as fears of a recession could further soften demand for such big-ticket purchases.

In the first quarter of 2024 , most EV stocks saw double digit declines, despite the S&P 500 rising 10%.

Rivian posted a mixed Q2 report. It reiterated its production, adjusted EBITDA, and capex guidance for the year.

Rivian Automotive reported a slightly lower loss than expected in Q2, but cash reserves continue to dwindle. The company reaffirmed plans to produce 57K electric vehicles, with a valuation still compelling despite cash decline. Rivian Automotive needs to implement major cost cuts to improve profitability, but remains a promising investment opportunity.