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2027 will be an ‘inflection year’ as R2, autonomy ramp up
CNBC • • business
Key Points:
- Rivian's stock has fallen over 80% since its November 2021 IPO, amid supply chain issues, geopolitical tensions, and slower EV adoption, but CEO RJ Scaringe remains optimistic about a turnaround by 2027.
- The company is ramping up production of its more affordable R2 SUV, which is now its best-selling vehicle and central to Rivian's path to profitability and revenue growth.
- Rivian is investing heavily in new vehicle software and autonomous driving technologies, aiming to surpass Tesla's capabilities with upcoming "point-to-point" driving features and autonomous vehicles planned with Uber by 2028.
- Despite improving operating performance and record deliveries, Rivian faces rising costs from factory expansion in Georgia and autonomy development, with analysts concerned about continued cash burn and the need for additional capital.
- The company holds about $5.5 billion in cash and expects total liquidity around $13 billion, planning to raise funds opportunistically while focusing on profitability; its stock is rated overweight with a $17.70 target, well below its IPO price.
