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- RIVN stock gained 17.02% in a week, 55.40% in three months, and 23.33% YTD.
- The entry of Porche Cars’ North America’s CEO as COO could benefit the company.
Rivian Automotive Inc. (NASDAQ: RIVN) stock gained 17.02% in a week, and the EV maker hired Dr. Kjell Gruner as COO and president of business growth. Investors took the stock price high, betting on Gruner’s expertise. It should be known that Gurner is serving as CEO of Porche Cars North America. Also, the macroeconomics situation is improving in America, providing an added boost.
Rivian Automitive Inc. (RIVN) Stock – Financial Analysis
Rivian is gaining solid ground in the Electric Vehicles market. A recent announcement of achieving a record range in its new Enduri drive units surfaced on August 30, 2023. The company is also excelling in the Chinese EV market. They are expected to build nearly 52,000 vehicles in 2023, more than twice that were manufactured in 2022.
Net loss for the quarter is $1.2 Billion, or $1.27 per share; compared to the year-ago quarter, net loss was $1.71 Billion or $1.89 per share. Rivian’s negative gross profit was $412 Million, considerably down from $704 Million a year ago. For the first quarter of 2023, the improvement per vehicle reached $35,000.
Sales between Q1 and Q2 2023 went from $661 Million to $1.12 Billion, while sales growth for Q2 was 69.59%. Rivian Automotive Inc. (NASDAQ: RIVN) reiterated its expectation to achieve positive gross profit by 2024.
Rivian Automotive Inc. (NASDAQ: RIVN) – Technical Analysis
RIVN stock, at press time, is trading at $23.31, gaining 2.55%; previous close and open were at $22.73 and $23.00, respectively. The 52-week range is from $11.68 to $40.86, suggesting a solid push could do the trick. With an average volume of 36.79 Million shares, the market cap is $22.101 Billion.
The trailing twelve-month (TTM) earnings per share (EPS) is negative $6.62, indicating financial weakness. Still, analysts placed a 2.55 rating for “BUY” and estimated a price target at $29.10 with a 24.8% upside.
Rivian reported Q2 earnings on August 8, 2023, where the reported revenue of $1.21 Billion surpassed the estimated value of $1.017 Billion by 10.25%. At the same time, the reported earnings of minus $1.08 also beat the estimated value of negative $1.428 by 24.35%. Despite such a positive earnings report, RIVN stock price fell 22.28% after the release.
Compared to the previous quarter, revenue gained a whopping 207.97% while earnings swelled by 33.33%. The subsequent earnings will be released on December 14, 2023, where the estimation for revenue is $1.311 Billion, and for EPS, it’s negative $1.365. The TTM revenue is $2.98 Billion, while the year-over-year (YoY) quarterly revenue growth is 208.00%.
Rivian Automotive (RIVN Stock) – Candle Exploration
RIVN stock price action traded in a narrow range for base formation between March and July 2023. It then reported a solid breakout, creating new highs for 2023, but it could not rally further, and the price dropped below 200EMA and 50EMA. However, the price crossed the EMAs, but the break cannot be said to be strong enough.
During the subsequent trading sessions, if the candles formed a bullish structure, they could try to reach immediate resistance. However, if the price drops, it could bounce off immediate support. Experts argue that RIVN share price actions would consolidate between $19.38 and $28.14 before rallying.
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