Rivian (RIVN) stock gets a boost ahead of R2 launch with new buy rating
EV maker Rivian’s (RIVN) stock is trending Thursday ahead of the highly anticipated launch of its new R2 electric SUV. Rivian stock scored a buy rating from Jefferies Finacial Group, suggesting over 45% upside potential.
Rivian stock scores buy rating ahead of R2 reveal
Rivian will reveal its more affordable R2 electric SUV at 10 am PT (1 pm ET) later today at its swanky new Laguna showroom. The event will be live-streamed, and you can check back here for the full details.
Leading up to its release, Rivian has teased the new electric SUV, showing what appears to be a smaller version of its top-selling R1S.
Rivian’s CEO, RJ Scaringe, vows that the R2 keeps the “essence of the brand” in a smaller, more affordable package. Leaked info earlier this week shows the R2 will start at $47,000 with up to 330 miles range. With the anticipated $7,500 EV tax credit, the R2 starting price could potentially fall below $40,000.
Meanwhile, there’s still plenty to be revealed later today. Ahead of the official R2 debut, Rivian’s stock earned a buy rating from Jefferies with a $16 price target.
With Rivian’s stock currently around $11 per share, the target suggests over 45% upside potential. Rivian shares have slipped over 47% through the first three months of 2024 following. RIVN shares hit an all-time low last month following a double analyst downgrade and plans to trim 10% of its workforce.
A substantial opportunity ahead
Although Rivian’s pace slowed in Q4 with 13,972 vehicles delivered, the EV maker anticipated it. CFO Claire McDonough said Rivian expected “a more significant gap between production and deliveries in Q4.” This was due to Amazon limiting intake during the holiday season.
Rivian reported a gross loss of $606 million in the fourth quarter, an improvement from the $1 billion loss last year. However, it was still up from (-$477 million) in Q3 and (-$412 million) in Q4.
| Q3 ’22 | Q4 ’22 | Q1 ’23 | Q2 ’23 | Q3 ’23 | Q4 ’23 | |
| Rivian loss per vehicle | $139,277 | $124,162 | $67,329 | $32,594 | $30,500 | $43,372 |
Gross margins also slipped to (-46%), equaling out to a $43,372 loss on every vehicle delivered between October and December.
Although that’s still a significant loss, it’s a substantial improvement from the over $124,000 loss per vehicle in Q4 2022.
Rivian will introduce new engineering and supplier upgrades during the planned shutdown at its Normal, Illinois EV plant in Q2 that will “meaningfully reduce” material costs exiting 2024. The EV maker projects a “modest growth profit” by the end of the year.
Due to the upgrades, Rivian expects to deliver around 57,000 vehicles this year, about the same as last year.
Rivian believes the “opportunity ahead is substantial” as it expands the brand. Check back later today for all the details of Rivian’s new R2.
Electrek’s Take
Although there are concerns about Rivian’s dwindling cash reserve, McDonough said the company remains “confident that our cash, cash equivalents, and short-term investments can fund our operations through 2025.”
Over the long term, Rivian sees a clear path to its projected 25% gross margin target and roughly 10% free cash flow margin target.
Rivian has already established itself as an authentic luxury EV brand. The R2 will help it expand into new markets, even Europe and potentially others. A quick skim through online forums shows Rivian already has fans overseas.
The smaller electric SUV will be built at Rivian’s new $5 billion GA EV facility. Rivian’s second EV manufacturing plant is expected to begin production in 2026.
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LiveWire, the electric motorcycle brand spun out of Harley-Davidson, has just announced its latest electric motorcycle model. The new LiveWire S2 Alpanista is built on the same platform as the brand’s last two models, leveraging the Arrow platform as a versatile foundation for several diverse bikes.
The Arrow platform first received its debut with the LiveWire S2 Del Mar, which was then followed by the S2 Mulholland.
LiveWire announced that a high-performance electric maxi-scooter would be produced on the Arrow platform, but not before the company rolled out the S2 Alpinista. “The Alpinista is LiveWire’s first sport standard,” explained the company, “equipped with 17” wheels and tires, blending the best of street, sport, and hyper-tourer characteristics.”
The recently unveiled S2 Alpinista is mechanically quite similar to the two previous models sharing the platform. The 10.5 kWh battery that serves as the main structure of the bike will offer a maximum range of 120 miles (193 km) per charge under city riding conditions. It can be recharged with a Level 2 charger from 20-80% in just 1 hour and 20 minutes.
The 433 lb (196 kg) bike can achieve a 0-60 mph (0-96 km/h) time of just 3.0 seconds, thanks to its powerful 63 kW (84 hp) motor. The S2 Alpinista can also reach an electronically limited top speed of 99 mph (159 km/h).
Priced at US $15,999 and already available at LiveWire dealerships in North America and Europe, the S2 Alpinista officially becomes the most affordable LiveWire electric motorcycle available to date, undercutting the $16,249 S2 Del Mar electric street tracker and the $16,499 Mulholland electric sport cruiser.
“Alpinista reimagines the S2 by combining the urban agility of a supermoto with the do-it-all nature of a touring bike, creating a practical and thrilling sport standard,” explained the brand.
The smaller 17″ wheels help reduce the seat height of the bike, and combined with the Dunlop Roadsmart IV tires, the street-optimized bike is ideal for “both daily commutes and spirited rides through winding roads.”
The S2 Alpinista comes with 6-axis IMU from Bosch providing cornering-enhanced antilock braking and cornering-enhanced traction control systems, in addition to four preset ride modes and two custom modes.
Now the third model launched on the Arrow platform, the S2 Alpanista underscores the versatility of LiveWire’s workhorse. The approach was intended to allow the e-motorcycle offshoot to quickly innovate with multiple styles of motorcycles all sharing key structural and drivetrain components. The move has largely been seen as an engineering success, with three models hitting the road in under three years. However, sales have yet to reach targets set by LiveWire as the more premium electric motorcycle industry has experienced a rocky few years.
As a LiveWire S2 Del Mar owner myself, I can attest to both the performance and enjoyable experience of bikes built on the platform, though I do find myself in a somewhat smaller community than LiveWire had likely hoped for. With the backing of its powerful older brother H-D, which retains a controlling stake in the company, LiveWire has enjoyed the relative freedom to cruise for its first few years and focus on motorcycle development and rollouts, with profitability hopefully coming over the horizon in due time.
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