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Estonia to buy US rocket artillery system in $200M deal
Rail workers say deal won't resolve quality-of-life concerns
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Russia rejects $60-a-barrel cap on its oil, warns of cutoffs
Thousands protest in South Korea in support of truckers
The Small Biotech Scaring Big Pharma (Ad)
Ukraine urges tougher Western squeeze on Russian oil prices
UK arrests wealthy Russian as police target Putin enablers
S&P 500   4,071.70
DOW   34,429.88
QQQ   292.55
Today Only: Get a 4K Camera Drone for Just $80
The Small Biotech Scaring Big Pharma (Ad)
Estonia to buy US rocket artillery system in $200M deal
Rail workers say deal won't resolve quality-of-life concerns
The Small Biotech Scaring Big Pharma (Ad)
Russia rejects $60-a-barrel cap on its oil, warns of cutoffs
Thousands protest in South Korea in support of truckers
The Small Biotech Scaring Big Pharma (Ad)
Ukraine urges tougher Western squeeze on Russian oil prices
UK arrests wealthy Russian as police target Putin enablers
S&P 500   4,071.70
DOW   34,429.88
QQQ   292.55
Today Only: Get a 4K Camera Drone for Just $80
The Small Biotech Scaring Big Pharma (Ad)
Estonia to buy US rocket artillery system in $200M deal
Rail workers say deal won't resolve quality-of-life concerns
The Small Biotech Scaring Big Pharma (Ad)
Russia rejects $60-a-barrel cap on its oil, warns of cutoffs
Thousands protest in South Korea in support of truckers
The Small Biotech Scaring Big Pharma (Ad)
Ukraine urges tougher Western squeeze on Russian oil prices
UK arrests wealthy Russian as police target Putin enablers
S&P 500   4,071.70
DOW   34,429.88
QQQ   292.55
Today Only: Get a 4K Camera Drone for Just $80
The Small Biotech Scaring Big Pharma (Ad)
Estonia to buy US rocket artillery system in $200M deal
Rail workers say deal won't resolve quality-of-life concerns
The Small Biotech Scaring Big Pharma (Ad)
Russia rejects $60-a-barrel cap on its oil, warns of cutoffs
Thousands protest in South Korea in support of truckers
The Small Biotech Scaring Big Pharma (Ad)
Ukraine urges tougher Western squeeze on Russian oil prices
UK arrests wealthy Russian as police target Putin enablers

Rivian Rising to the Challenge

Rivian Rising to the ChallengeRivian (NASDAQ: RIVN) was heavily hyped up EV play up due to the celebrity fund manager investors like Ray Dalio and David Einhorn as well as the investments by Amazon (NASDAQ: AMZN) and Ford (NYSE: F). The Company is solely focused of scaling up production. The Company expects the impact of inflationary pressures to continue in the near term as their cost of materials has risen. However, this hasn’t deterred demand even with the 20% rise in prices in March 2022. Pre-orders continue demonstrating strong price elasticity. This is underscored by the 8,000 new pre-orders to backlog of 98,000 pre-orders end the of June 30, 2022. Rivian expects to reach its production target of 25,000 units in 2022 with the goal of ramping up production to its 150,000 unit capacity. U.S. electric vehicle (EV) manufacturer Fisker Inc. (NYSE: FSR) stock has been a rollercoaster hitting a high of $179.47 on Nov. 17, 2021, to a low of $19.25 on May 11, 2022. Shares are trading down (-67%) for the year.

Already in Production

Rivian is one of the very few U.S. EV makers that is already in production (way) behind leader Tesla (NASDAQ: TSLA) and Fisker (NYSE: FSR) set to go into production on Nov. 17, 2022. They delivered 4,467 vehicles and produced 4,401 vehicles across its line of R1T, R1S, and EDV 720 models in its second quarter of 2022. The Company started its validation builds for its EDV 500 model. Rivian announced it was discontinuing its lower-priced models including the R1T pickup truck and R1 SUV.


More Money, More Problems

On Aug. 11, 2022, Rivian released it Q2 2022 results for the quarter ending June 2022. The Company reported GAAP earnings-per-share (EPS) loss of (-$1.62), beating consensus analyst estimates by $0.01. Revenues rose year-over-year (YoY) from zero sales to $364 million beating $338 consensus analyst estimates. R&D expense rose to $543 million, up from $364 million a year ago. Low volumes on production lines designed for high volumes results in losses from labor and overhead costs, but that improves with rising volume. Production capacity is 150,000 units. Net losses were (-$704 million) but that’s expected until production volume ramps up. Rivian has $15.463 billion in cash, restricted cash, and cash equivalents.

Amazon Business

Rivian has been operating pilot deployments with Amazon to refine its electric delivery vans (EDVs) products. Amazon is not only an investor but a major customer for Rivian with plans to purchase 100,000 EDVs. The Company has developments a fleet management system called FleetOS, which is an end-to-end centralized system that includes vehicle distribution, service, charging, telematics, connectivity, life cycle management. Every EV delivered to Amazon will have a FleetOS subscription. The Company is also ramping up it fast charging network, the Rivian Adventure Network. They expect to deliver EDVs to 100 cities by the end of 2022.

Ramping Up Production  

Rivian has stated that its core focus is solely on ramping up production. They re-affirmed the target of 25,000 total units produced in 2022. Annual adjusted EBITDA is expected around (-$5.45 billion) but capex was lowered to $2 billion. The Company is confident in its ability to launch the R2 in Georgia in 2025 with current cash in hand. However, on Aug. 19, 2022.

Inflation Reduction Act Benefits

The Inflation Reduction Act was signed into law by President Biden on Aug. 17, 2022. In addition to the $430 million allocated to clean energy and greenhouse gas reduction, the law provides a $7,500 credit applied towards the purchases of an EV provided it meets certain requirements in regard to pricing, manufacturing and component parts. Rivian CEO RJ Scaringe commented on how it will impact its business, “The commercial segment, in particular, will benefit from the strong incentives for fleet operators to electrify and our RCV platform has been developed for a wide range of applications. While many of our R1 configurations won’t meet the bill’s pricing requirements, our R2 product line and associated cell road map are being developed to allow our customers to capture the value of these incentives. We have plenty of work ahead of us, but I couldn’t be more excited about the work our teams are doing for the ramp of the R1 EDV vehicles as well as the products, services and technologies we have in the pipeline.”

Rivian Rising to the Challenge

Here’s What the Chart Says

Using the rifle charts on the weekly and daily time frames provides a precision near-term view of the landscape for RIVN stock. The weekly rifle chart found support under the $22.44 Fibonacci (fib) level. RIVN struggled for many weeks until finally triggering the breakout the weekly market structure low (MSL) buy trigger above $30.60. The weekly 5-period moving average (MA) is starting to flatten at $35.24 followed by the rising 15-period MA support at $31.48. The weekly stochastic peaked just below the 80-band as shares peaked at $40.56. The weekly upper Bollinger Bands (BBs) sit at $41.65 and lower BBs at $21.56. The daily rifle chart has been downtrending led by the 5-period MA at $33.04 followed by the 15-period MA resistance at $35.91. The daily stochastic formed a mini inverse pup to fall through the 80-band to the oversold 10-band level. The daily 50-period MA support is rising at $32.26. The daily upper BBs sit at $41.09 and lower BBs at $30.47. Attractive pullback levels are at the $31.74 fib, $29.35 fib, $28.21 fib, $26.30 fib, $24.95 fib, and the $23.50 fib level.   

Should you invest $1,000 in Rivian Automotive right now?

Before you consider Rivian Automotive, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Rivian Automotive wasn't on the list.

While Rivian Automotive currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Rivian Automotive (RIVN)
2.2639 of 5 stars
31.36-0.4%N/A-3.02Moderate Buy57.91
Amazon.com (AMZN)
2.9844 of 5 stars
$94.13-1.4%N/A86.40Moderate Buy$149.61
Ford Motor (F)
2.1906 of 5 stars
$13.86-1.6%4.33%6.30Hold$18.13
Fisker (FSR)
1.8773 of 5 stars
$7.63+4.2%N/A-4.41Hold$14.92
Tesla (TSLA)
2.9489 of 5 stars
$194.86+0.1%N/A60.20Hold$278.43
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Jea Yu

About Jea Yu

Contributing Author: Trading Strategies

With over 20 years of active participation and analysis of the US equities, options and futures markets, Mr. Yu brings fresh insights into the workings of the financial markets. He has published four books by esteemed publishers McGraw-Hill, John Wiley & Sons, Marketplace Books and Bloomberg Press. His brainchild, the Underground Trader, was voted Forbes Best of the Web for four consecutive years under the active trader category. He has been a featured speaker all over the country at various expos and seminars who enjoys a standing-room-only reception in the largest convention halls from New York to Las Vegas. He has been quoted and featured in USA Today, Wall Street Journal, Traders Magazine and the Financial Times and various trade publications like Stocks & Commodities, Active Trader and Online Investor. Mr. Yu has a B.A. in Liberal Arts and minor in Business Administration from the University of Maryland.
Contact Jea Yu via email at JeaYu21@gmail.com.