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1. Company Snapshot

1.a. Company Description

Rivian Automotive, Inc.designs, develops, manufactures, and sells electric vehicles and accessories.The company offers five-passenger pickup trucks and sports utility vehicles.


It provides Rivian Commercial Vehicle platform for electric Delivery Van with collaboration with Amazon.com.The company sells its products directly to customers in the consumer and commercial markets.Rivian Automotive, Inc.


was founded in 2009 and is based in San Jose, California.

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1.b. Last Insights on RIVN

Rivian Automotive's recent performance was driven by strong Q3 results, with revenue growing 78% year-over-year to $1.56 billion and gross profit turning positive at $24 million. The company's board approval of a new 10-year compensation plan for CEO RJ Scaringe, tied to ambitious stock price targets and profitability goals, signals confidence in its long-term strategy. Additionally, the upcoming R2 SUV launch is poised to drive growth, targeting a broader, more affordable EV market segment. Ample liquidity and partnerships with Volkswagen and Mind Robotics further support its evolution into a tech-driven EV leader.

1.c. Company Highlights

2. Rivian's Q3 Earnings: A Closer Look at Financial Performance

Rivian reported revenues of $1.34 billion in Q3, with an automotive gross profit of -$130 million, negatively impacted by low fixed cost absorption associated with planned shutdowns. The company's Software and Services segment reported $416 million of revenue and $154 million of gross profit. Rivian's EPS came in at -$0.7, slightly better than estimates of -$0.72. The company's cash position remained strong, with approximately $7.1 billion of cash, cash equivalents, and short-term investments.

Publication Date: Nov -06

📋 Highlights
  • R2 Production Progress:: Completed 1.1M sq ft R2 Body Shop and 1.2M sq ft Supplier Park, on track for launch.
  • Q3 Deliveries:: Delivered 13,201 vehicles, with 10,720 produced, despite $130M negative automotive gross profit.
  • Software Revenue:: Generated $416M in revenue and $154M gross profit, highlighting strong segment performance.
  • Liquidity & Capital:: $7.1B cash reserves and potential $2.5B from VW joint venture, $6.6B DOE loan expected.
  • Cost Efficiency:: Achieved $96,300 COGS per unit delivered in Q3, a record despite production shutdowns.

Operational Highlights

Rivian produced 10,720 vehicles and delivered 13,201 vehicles from its manufacturing facility in Q3. The company is making progress on its R2 program, having completed the construction of its 1.1 million square foot R2 Body Shop and General Assembly Building. According to CEO RJ Scaringe, "We're bullish on R2 and its potential to capture the magic of R1 in a more cost-effective package."

Guidance and Outlook

Rivian reaffirmed its 2025 delivery guidance range of 41,500 to 43,500 units and its 2025 adjusted EBITDA loss guidance range of $2 billion to $2.25 billion. The company expects to receive additional capital of up to $2.5 billion associated with its Volkswagen Group joint venture transaction and up to $6.6 billion loan at a favorable cost of capital from the Department of Energy.

Valuation Metrics

Analysts estimate Rivian's revenue growth at 31.3% next year. With a P/S Ratio of 3.2 and an EV/EBITDA of -6.19, the market is pricing in significant growth expectations. The company's ROE is -59.79%, and its ROIC is -29.01%, indicating significant losses. The Net Debt / EBITDA ratio is 1.64, suggesting a manageable debt position.

Key Takeaways

Rivian's Q3 earnings report highlights the company's progress on its R2 program and its strong cash position. While the company is still reporting significant losses, its revenue growth expectations and valuation metrics suggest that the market is pricing in a turnaround. As Rivian continues to execute on its strategic priorities, investors will be watching closely for signs of improvement in the company's financial performance.

3. NewsRoom

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Market Today: WBD Sale Bids, Meta Cuts, Apple Shake-Up

Dec -04

Source: gurufocus.com

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How is Rivian Addressing Its Delivery Van Seat Belt Issue?

Dec -04

Source: zacks.com

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Rivian Stock Could Double On Affordable R2 SUV Launch

Dec -04

Source: forbes.com

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1 No-Brainer Electric Vehicle (EV) Stock to Buy With $500 Right Now

Dec -04

Source: fool.com

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Ford CEO Jim Farley Hails Trump's CAFE Rollback, Reaffirms Investment In US-Made Cars—Sean Duffy Says Decision Will Save $109 Billion For Americans

Dec -04

Source: feeds.benzinga.com

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Rivian Recalls 35,000 Vans Over Seat Belt Risk

Dec -03

Source: gurufocus.com

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Rivian recalls 35K delivery vans over defective seat belts that could fail in crashes

Dec -03

Source: nypost.com

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Boomers Seeking Passive Income Are Buying 5 Safe High-Yield Monthly Pay ETFs

Dec -03

Source: 247wallst.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (22.18%)

6. Segments

Electric Vehicles

Expected Growth: 22.18%

Rivian Automotive, Inc.'s 22.18% growth in Electric Vehicles is driven by increasing adoption of sustainable energy solutions, government incentives for eco-friendly vehicles, and rising consumer demand for environmentally responsible transportation options. Additionally, Rivian's innovative products, expanding charging infrastructure, and strategic partnerships with major companies contribute to its rapid growth.

7. Detailed Products

R1T

A fully electric pickup truck designed for adventure and utility, featuring a quad-motor system, advanced technology, and a spacious interior.

R1S

A fully electric SUV designed for adventure and family use, featuring a tri-motor system, advanced technology, and a spacious interior.

EDV 700

A fully electric van designed for commercial use, featuring a large cargo capacity, advanced technology, and a durable design.

Rivian Adventure Network

A network of fast-charging stations and adventure-focused amenities designed to support Rivian owners on the go.

Rivian Service and Support

A comprehensive service and support program designed to keep Rivian vehicles running smoothly, featuring remote diagnostics, over-the-air updates, and dedicated customer support.

8. Rivian Automotive, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Rivian Automotive, Inc. faces moderate threat from substitutes, as customers have limited alternatives for electric adventure vehicles. However, the growing popularity of electric vehicles and increasing competition in the market may lead to more substitutes in the future.

Bargaining Power Of Customers

Rivian Automotive, Inc. has a low bargaining power of customers, as customers have limited negotiating power due to the company's unique product offerings and limited competition in the electric adventure vehicle market.

Bargaining Power Of Suppliers

Rivian Automotive, Inc. faces moderate bargaining power of suppliers, as the company relies on a few key suppliers for critical components, such as batteries and electric motors. However, the company's growing scale and vertical integration efforts may reduce supplier bargaining power over time.

Threat Of New Entrants

Rivian Automotive, Inc. faces a high threat of new entrants, as the electric vehicle market is attractive and growing, with many new companies entering the market. However, the company's first-mover advantage, unique product offerings, and growing brand recognition may help to mitigate this threat.

Intensity Of Rivalry

Rivian Automotive, Inc. operates in a highly competitive market, with intense rivalry among existing players, including established automakers and new entrants. The company's focus on electric adventure vehicles and its unique product offerings may help to differentiate it from competitors, but the company must continue to innovate and invest in marketing and sales to maintain its competitive position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.08%
Debt Cost 4.47%
Equity Weight 66.92%
Equity Cost 13.47%
WACC 10.49%
Leverage 49.44%

11. Quality Control: Rivian Automotive, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Rivian Automotive

A-Score: 4.6/10

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Growth: 6.6

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Yield: 0.0

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Envirotech Vehicles

A-Score: 2.8/10

Value: 8.4

Growth: 5.2

Quality: 2.7

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.25$

Current Price

18.25$

Potential

-0.00%

Expected Cash-Flows