Rivian Automotive (RIVN) AI Stock Analysis

• Market Cap: $17.12B
• Dividend Yield: N/A
• Average Volume (3M): 47.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: 2.73%
• EPS Growth: 45.63%
• Country: US
• Employees: 14,861
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -0.80
• Shares Outstanding: 1,209,521,500
• 10 Day Avg. Volume: 53,625,339
• 30 Day Avg. Volume: 47,859,040
• PEG Ratio: 0.16
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 2.71
• P/FCF Ratio: -4.72
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 2.58
• Enterprise Value/Gross Profit: -59.78
• Enterprise Value/Ebitda: -6.66
• 1Y Price Target: $13.89
• Price Target Upside: -5.38% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 22

• Rating: 49 Neutral
• Price Target: $13.00 ▼(-11.44% Downside)

Rivian's overall stock score reflects significant financial challenges, with ongoing losses and high leverage being major concerns. While technical indicators show mixed momentum, the company's valuation remains weak due to negative earnings. The earnings call provided some positive insights, particularly regarding strategic investments and growth in software/services, but these are offset by production and regulatory challenges.

Positive Factors

Strategic Investments

The $1 billion investment from Volkswagen strengthens Rivian's balance sheet and supports its growth initiatives, enhancing long-term financial stability.

Software and Services Growth

Growth in the software and services segment diversifies revenue streams and enhances profitability potential, supporting sustainable business expansion.

R2 Program Development

Advancements in the R2 program, including cost reductions and component sourcing, position Rivian for competitive advantage and future market growth.

Negative Factors

Production Volume Decrease

Decreased production volumes due to supply chain issues could impact revenue and market share, posing a challenge to meeting delivery targets.

Regulatory and Tariff Challenges

Regulatory and tariff challenges may reduce profit margins, affecting Rivian's financial performance and competitiveness in international markets.

Increased Operating Expenses

Rising operating expenses, driven by investments in R2 and technology, pressure profitability and require effective cost management for long-term success.

Rivian Automotive Business Overview & Revenue Model

Company Description

Rivian Automotive, Inc. is an American electric vehicle manufacturer headquartered in Plymouth, Michigan. Founded in 2009, the company specializes in designing and producing electric trucks and SUVs, with a focus on adventure-oriented vehicles that combine utility and sustainability. Rivian's flagship products include the R1T electric pickup truck and the R1S electric SUV, both built on a flexible skateboard platform that accommodates various configurations and battery sizes. The company aims to redefine the automotive landscape by offering innovative electric solutions for outdoor enthusiasts and environmentally conscious consumers.

How the Company Makes Money

Rivian generates revenue primarily through the sale of its electric vehicles, notably the R1T and R1S models. The company has also established a reservation system, allowing customers to place deposits on vehicles before their official release, which helps to gauge demand and secure early funding. Additional revenue streams include the sale of accessories and services related to their vehicles. Rivian has formed strategic partnerships, notably with Amazon, which has invested in the company and ordered a fleet of electric delivery vans, providing a significant revenue stream. The company also explores potential revenue from charging networks and software services, including over-the-air updates and autonomous driving features, contributing to its long-term growth strategy.

Rivian Automotive Financial Statement Overview

Summary

Rivian Automotive is experiencing revenue growth but faces significant profitability and cash flow challenges. High leverage and negative margins are key risks, requiring strategic improvements in cost management and operational efficiency.

Income Statement

Rivian Automotive shows a slight improvement in revenue growth, with a 2.9% increase in the TTM period. However, the company continues to face significant challenges with negative gross, net, EBIT, and EBITDA margins, indicating ongoing profitability issues. The negative margins reflect high costs relative to revenue, which is a concern for long-term sustainability.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.96 in the TTM period, indicating higher leverage compared to previous years. While the equity ratio remains relatively stable, the negative return on equity highlights the company's struggle to generate profits from shareholders' investments. The balance sheet shows a need for improved financial management to enhance profitability and reduce leverage.

Cash Flow

Rivian's cash flow situation is concerning, with negative free cash flow growth and a negative operating cash flow to net income ratio. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses, but the overall cash flow position indicates a need for better cash management and cost control to achieve positive cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.15B	4.97B	4.43B	1.66B	55.00M	0.00
Gross Profit	-222.00M	-1.20B	-2.03B	-3.12B	-465.00M	-29.00M
EBITDA	-1.99B	-3.39B	-4.27B	-5.99B	-4.46B	-981.00M
Net Income	-3.50B	-4.75B	-5.43B	-6.75B	-4.72B	-1.02B
Balance Sheet
Total Assets	15.60B	15.41B	16.78B	17.88B	22.29B	4.60B
Cash, Cash Equivalents and Short-Term Investments	7.51B	7.70B	9.37B	11.57B	18.13B	2.98B
Total Debt	6.33B	5.00B	4.92B	1.81B	1.53B	180.00M
Total Liabilities	9.52B	8.85B	7.64B	4.08B	2.78B	5.99B
Stockholders Equity	6.07B	6.56B	9.14B	13.80B	19.51B	-1.38B
Cash Flow
Free Cash Flow	-1.22B	-2.86B	-5.89B	-6.42B	-4.42B	-1.76B
Operating Cash Flow	183.00M	-1.72B	-4.87B	-5.05B	-2.62B	-848.00M
Investing Cash Flow	-2.00B	-1.98B	-2.51B	-1.37B	-1.79B	-914.00M
Financing Cash Flow	858.00M	1.14B	3.13B	99.00M	19.83B	2.50B

Rivian Automotive Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RIVN, the sentiment is Positive. The current price of 14.68 is above the 20-day moving average (MA) of 13.82, above the 50-day MA of 13.16, and above the 200-day MA of 13.15, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 79.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RIVN.

Rivian Automotive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSLA	76 Outperform	1.37T	246.74	7.90%	―	-2.73%	-51.64%
LI	74 Outperform	25.96B	24.44	11.33%	―	7.49%	-21.06%
XPEV	55 Neutral	20.61B	-34.56	-18.51%	―	66.53%	48.17%
NIO	51 Neutral	15.67B	-4.61	-379.72%	―	9.60%	-5.91%
RIVN	49 Neutral	$17.12B	―	-54.42%	―	2.73%	45.63%
LCID	43 Neutral	6.48B	-1.83	-95.34%	―	39.01%	7.12%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Rivian Automotive Corporate Events

Rivian Automotive Secures $1 Billion Investment from Volkswagen

Rivian Automotive announced that it achieved a financial milestone by receiving a $1 billion investment from Volkswagen Group on June 30, 2025, in exchange for Class A common stock, marking a significant step in their $5.8 billion technology joint venture. Additionally, Rivian reported its Q2 2025 production and delivery figures, with 5,979 vehicles produced and 10,661 delivered, aligning with its outlook and reaffirming its 2025 delivery guidance range of 40,000 to 46,000 vehicles.

Rivian Automotive Approves Key Amendments at Annual Meeting

On June 18, 2025, Rivian Automotive held its Annual Meeting of Stockholders, where several amendments to its Certificate of Incorporation were approved. These included increasing the authorized shares of Class A common stock and exculpating certain corporate officers from liability under specific conditions. The meeting also saw the election of three directors and approval of various proposals, including the ratification of KPMG LLP as the independent auditor and future issuance of shares to Volkswagen International America, Inc. These changes, effective as of June 20, 2025, following the filing with Delaware’s Secretary of State, are expected to impact Rivian’s operational flexibility and governance structure.

Rivian Announces $1.25 Billion Green Notes Offering

On June 4, 2025, Rivian Automotive announced the pricing of a $1.25 billion senior secured green notes offering, intended to refinance its outstanding senior secured notes due 2026. The closing of the notes is expected on June 12, 2025, and the proceeds will be used to redeem the existing notes and cover related expenses. The notes are expected to be secured by the company’s assets and guaranteed by its subsidiaries, reflecting Rivian’s strategic financial maneuvering to strengthen its capital structure and maintain its focus on sustainable transportation solutions.