Rivian Automotive’s shares rose by 11.2% on December 9th, driven by positive news and investor optimism about the electric vehicle market. The company’s partnership with Volkswagen AG and a bullish rating from Benchmark have contributed to this surge.
However, despite the recent gains, analyst confidence remains mixed. Some analysts maintain a “sell” rating due to concerns over Rivian’s uncertain profitability, high production costs, and intense competition in the electric vehicle market.
The plans for Rivian’s Georgia plant include a $5.78 billion investment from Volkswagen and a conditional $6.6 billion loan from the US Department of Energy. While this funding will help support production growth, it also highlights the significant losses incurred by the company per vehicle produced.
Rivian’s financials show improved profit margins but substantial losses on a per-vehicle basis. The company’s future success hinges on scaling production and achieving profitability amidst industry challenges.
Source: https://seekingalpha.com/article/4743222-putting-rivian-automotive-stock-latest-surge-in-perspective-reiterate-sell