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On Wednesday, BofA Securities maintained its Underperform rating and $10.00 price target for Rivian Automotive Inc (NASDAQ: NASDAQ:RIVN). According to InvestingPro data, the stock currently trades at $13.50, with analyst targets ranging from $6.10 to $23.00. The company’s Financial Health Score stands at "FAIR" with a 2.2 overall rating. The firm’s analyst highlighted Rivian’s first-quarter performance, which surpassed both the Bank of America (BofA) and consensus estimates. Rivian reported an adjusted EBITDA loss of $300 million, which is significantly better than the expected losses of $500 million by BofA and $550 million by consensus. Additionally, the company’s revenue reached $1.24 billion, exceeding BofA’s estimate of $970 million. InvestingPro data shows the company’s trailing twelve-month revenue stands at $4.97 billion, with a 12.09% growth rate, though it’s worth noting the company is quickly burning through cash.
The electric vehicle manufacturer also reported a gross margin of 17%, which is notably higher than BofA’s estimated margin of -8%. This improvement was attributed to an increase in regulatory credits, amounting to $157 million, and a rise in Software (ETR:SOWGn) and Services revenue, which totaled $318 million. This latter figure includes the recognition of payments from Volkswagen (ETR:VOWG_p) to fund their joint venture, with $167 million recognized in the first quarter. Despite this improvement, InvestingPro analysis indicates the company still suffers from weak gross profit margins, with a -24.14% margin over the last twelve months.
However, Rivian’s vehicle deliveries for the first quarter of 2025 saw a decline, with 8,640 vehicles delivered, a decrease from the 14,183 vehicles delivered in the fourth quarter of 2024. This also represents a 36% year-over-year drop from the 13,588 vehicles delivered in the first quarter of 2024. Despite the decrease in deliveries, Rivian managed to produce 14,611 vehicles during the quarter, marking a 15% quarter-over-quarter increase from the 12,727 vehicles produced in the last quarter of 2024.
The company’s performance indicates a mixed outcome, with production ramping up and better-than-expected financial results, yet facing a significant drop in vehicle deliveries compared to previous periods. The maintained Underperform rating and price target by BofA Securities reflect a cautious outlook on Rivian’s stock, despite the company’s recent financial achievements. For deeper insights into Rivian’s financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Rivian Automotive Inc. reported a narrower-than-expected loss for the first quarter of 2025, with earnings per share of -$0.41, surpassing the forecast of -$0.76. The company’s revenue also exceeded expectations, reaching $1.24 billion compared to an anticipated $983.65 million. Despite these positive financial results, Rivian’s stock experienced a decline in after-hours trading. Rivian also revised its full-year delivery guidance to 40,000-46,000 vehicles. The company is making significant progress in developing its R2 prototype, which is set to launch in the first half of 2026. Additionally, Rivian is expanding its manufacturing capabilities with a 1.1 million square foot expansion to its facility in Normal, Illinois, and plans to start construction on a new facility in Georgia next year. The company has raised its capital expenditure guidance to $1.8 billion-$1.9 billion, anticipating that the R2 model will enhance its cost structure and profitability. Rivian’s adjusted EBITDA loss guidance remains at -$1.7 billion to -$1.9 billion for the full year 2025.
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