Rivian nasdaq Rivn Stock Sinks As Quarterly Production Figures Disappoint Analysts Urge Caution

Rivian (NASDAQ: RIVN) Stock Sinks as Quarterly Production Figures Disappoint, Analysts Urge Caution

Rivian Automotive (NASDAQ: RIVN) stock plummeted over 5% in intraday trading Tuesday after the EV maker reported lower-than-expected quarterly production figures. Analysts maintain caution on RIVN shares, citing short-term challenges and longer-term capital needs.

Rivian (RIVN) has reported its first-quarter electric vehicle (EV) delivery numbers, surpassing analyst expectations but falling short of production figures. 

The company announced that it delivered 13,588 EV units in Q1, outpacing the consensus estimate of 11,893 compiled by Bloomberg. However, Rivian’s manufacturing output at its Normal, Illinois facility stood at 13,980 vehicles, slightly below the estimated 14,250.

Despite this deviation from expectations, Rivian’s management expressed satisfaction with the Q1 performance, stating that it aligns with the company’s internal projections and signifies a robust start to the year. Rivian remains steadfast in its guidance of producing 57,000 vehicles by the end of 2024.

Analysts Take on RIVN Stock

Truist analysts commented on Rivian’s Q1 numbers, acknowledging the positive delivery figures but highlighting concerns over near-term volume, margin, and cash flow impacts.

Truist analysts stated,

“In our view, while the solid 1Q numbers should help quell some of the bearish concerns surrounding EV demand, near-term volume/margin/cash flow impacts entering the shutdown, along with longer-term capital needs (albeit more modest given the Georgia delay/R2 ramp out of Normal) keep us at Hold on the shares.”

They added,

“We ultimately see shares remaining range bound until RIVN can demonstrate sustainable gross margin improvement coming out of the Normal shutdown.”

The production miss comes days after Mizuho downgraded RIVN stock. Mizuho analysts pointed out challenges related to high prices for Rivian’s vehicles, particularly the R1 model priced between $70,000 to $95,000, and the delayed availability of lower-priced R2 and R3 models, projected for the first half of 2026.

Rivian (NASDAQ: RIVN) Stock Performance

RIVN stock plunged 5.23% to close at $10.51 on Tuesday. The traders had exchanged hands with 43,195,032 (43.19 million) shares compared to the average daily trading volume of 42.97 million.