Rivian Shows Silver Linings Before Earnings

  • Rivian is facing strong competition in the EV segment as Tesla and other companies have announced big price cuts to attract customers.
  • Rivian has cash reserves of $9.4 billion at the end of 2023 while it produced 57,000 cars in 2023.
  • Higher cash reserves compared to current delivery volumes give Rivian flexibility for additional discounts, like they gave on Earth Day.
  • The company is also cutting costs and improving supply chain, which should help it achieve positive gross profit by the end of the year.
  • Rivian’s PS ratio is quite attractive considering the revenue base of the company and forward growth runway.

Rivian (NASDAQ:RIVN) along with the entire EV industry is going through a trial by fire. The next earnings will be reported on 7th May. The high-interest rate environment has already dented demand and at the same time, the