Rivian (RIVN) Reports Q1
Rivian (RIVN) has been our dog in the portfolio but I’ve held on because I think the potential for shares to come back and ultimately work well is still there. Yesterday’s first-quarter results don’t suggest that will happen right away, but there are certainly some bright spots.
The company grew revenue by 82% to $1.2 billion ($35 million above expectations) while adjusted EPS of -$1.24 was about flat with last year and missed by $0.09. Gross loss per vehicle improved by $3,000 to “only” -$39,000. The company had higher operating expenses from the retooling of the Normal, IL facility. This retooling should be a good thing over time as the company will operate more efficiently with R2 production moving to Normal. Vehicle production of 13,980 was down 20% from the previous quarter (Q4 2023) but remains on target to meet management’s guidance of 57,000 units this year.
Possibly bigger than the quarterly results is the rumor that Rivian and Apple (AAPL) are in talks about a potential collaboration. This (if it were to be true) likely focuses on data and it seems like Apple CarPlay would be the backbone of any partnership. Just a rumor for now but worth keeping an eye on. Rivian is a long-term buy. BUY
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