Rivian Automotive, Inc. RIVN stock is on a two-session run-up, and the continuation of the rally depends on the news emerging out of its investor day scheduled for 9 a.m. EDT on Thursday.
What Happened: Ahead of the event, fund manager Gary Black, in a post on X, formerly Twitter, detailed his expectations.
Georgia Plant Plans: The recently announced cash infusion from German legacy automaker Volkswagen AG VWAGY will likely help the company to move forward with plans to build the new 400,000-unit capacity Georgia electric-vehicle factory, said Black.
Rivian initially planned to build its second-generation EVs, codenamed R2, from the Georgia plant but later decided to accommodate these vehicles at its existing Normal, Illinois plant. The company reasoned that the changed plan was to skimp on costs. It received $827 million worth of incentives from the state of Illinois to expand its main factory in Normal.
Black, Managing Partner at Future Fund, said the company can now manufacture its mass-market R3 EVs at the Georgia plant.
See Also: Best EV Stocks
Margin Goals: Rivian will likely say at the event that it continues to target break-even gross margin by the end of 2024, said Black. The company, which is yet to turn a profit, targets a small gross profit for the fourth quarter. The EV maker recorded a negative gross profit of $527 million for the first quarter.
Production Goals: Black expects Rivian to reaffirm its 2024 production guidance of at least 57,000 vehicles. The EV industry is going through an inclement environment, with demand dropping and industry players undercutting competition.
Why It’s Important: Rivian announced earlier this week up to $5 billion investment from Volkswagen, with the companies also floating plans for a joint venture to share EV architecture and software. Wedbush’s Daniel Ives called the deal a major win for Rivian and raised the stock’s price target from $15 to $20.
“A breath of fresh air as the Rivian story develops; all about production and execution looking forward for the story to continue its build,” he said.
In premarket trading on Thursday, Rivian shares were up 0.54% at $14.82, according to Benzinga Pro data. The stock has gained about 43% this week.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Image Via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
