Rivian Stock Remains a Long-Term Story, Says RBC
4/3 04:27
Nothing comes easy, right? A sentiment Rivian (RIVN) – and its investors – can relate to right now.
As RBC’s Joseph Spak notes, the EV maker is “highly vertically integrated and is launching 3 new products (off two platforms) at the same time, in a new plant.”
As such, the company has plenty to deal with. “The production ramp was always one of the biggest near-term risks to the story, and we expected there would be some hiccups along the way,” the analyst went on to say.
And that has turned out to be true. Spak’s comments come in the wake of what has been a testing period. To make tweaks to the vehicle lines, Rivian shut down its plant in January. Additionally, according to CEO RJ Scaringe, more than 800 plant workers were out for a few weeks with Omicron. Getting hold of semiconductors remains an issue too.
With all the above as backdrop, Spak forecasts fewer deliveries than previously anticipated. The analyst has lowered 2022’s expected tally from 42,700 to 24,800. Consensus has 41,400. For 2023, Spak has “prudently” dropped his forecast from the prior ~100,000 (same ...