NASDAQ title Rivian: This is what Tesla rival Rivian is planning for the future

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• Further production increases for the R models
• Concrete planning of the R2 vehicle line
• Analysts remain enthusiastic about growth ambitions

In an interview with YouTuber Marques Brownlee, Rivian CEO RJ Scaringe has some insights into the US’s future plans electric car-Given to startups.

Thanks for having me @MKBHD – enjoy our time together! https://t.co/zBS9I8SCwZ

– RJ Scaringe (@RJScaringe) April 7, 2023

The Amazon stake was recently criticized for production difficulties and missed sales expectations. In 2022, Rivian itself missed its halved production target and occupied the media with numerous staff departures.

According to media reports, however, the tide for Tesla’s rival could turn in 2023, because the Californian carmaker is said to have announced internally that the production target of 50,000 vehicles aimed for this year could be significantly exceeded.

Production lines R1 and R2: production ramp-up and profitability

With regard to the production figures, Rivian CEO RJ Scaringe now provided deeper insights in the YouTube interview for the first time: 85,000 vehicles of the R1 vehicle line are to be built per year by 2026.

A cheaper R2 vehicle line is also planned, which should appeal to a significantly larger number of customers. With this, Rivian relies on the core elements and less on luxurious equipment and “bells and whistles,” emphasizes Scaringe. However, Rivian’s “personality” should be preserved. The interviewer was not able to elicit anything specific about the start of production from the CEO.

Investors were all the more surprised by a statement by Rivian CFO Claire Rauh McDonough at the Bank of America-Securities Summit that production of the R2 truck would begin as early as 2025 to 2026 and that annual production of 200,000 R2 would be targeted from 2026 .

According to Claire Rauh McDonough, the R2 vehicle line will be distributed in numerous markets, in order to compete with models such as the Tesla Model Y. This fuels expectations that Rivian is looking beyond the North American market to Europe. Starting prices for the new truck are expected at $40,000.

Despite Amazon’s recent announcement to reduce van orders for this year, Rivian remains focused on ramping up production and key production upgrades, according to the CFO. According to TESLARATI, Rivian also wants to focus on the strategic expansion of its charging infrastructure and be included in the “Federal Charging Fund”. On the one hand, this would mean opening up the landing network and, on the other hand, support from the federal government for the expansion of the charging network.

Rivian share: Analyst opinions remain bullish

Twelve of the 18 analysts on TipRanks currently rate the Rivian share as a buy, five as a “hold” and one as a “sell”. The median target price is $26.11, up 117 percent from the current level of $12.00 (close 04/25/2023). It is miles away from its opening price on November 10, 2021 of $106.75 and its all-time high of $153.80 a few weeks after the IPO (11/16/2021). The company’s market value has shrunk from more than $100 billion to around $11.4 billion since the IPO (as of April 25, 2023).

While Morgan Stanley analysts still recommend the stock as a buy, they criticized the electric car maker’s lack of a strategic direction. However, while calling investors “frustrated,” they highlighted Tesla-style growth ambitions. In summary, they wrote, according to CNBC, “We remain confident in the company’s differentiated product, scalable end markets, cost reduction potential, cash position and valuation.” According to wallstreet:online, the analysts at Bank of America describe the electric car manufacturer from California as a “relative competitive threat for the established brands” and set the price target at 40 US dollars. Rivian is one of the most viable start-ups in the industry.

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