Rivian’s stock declined after its Q3 delivery results were announced, despite exceeding expectations. The company had seen a strong stock rally prior, gaining 35% over the past two months.
Stock Performance and Q3 Results
Rivian delivered 13,201 vehicles, surpassing the forecast of about 12,000. This reflects a 24% growth from the previous quarter and a 32% increase from the same quarter last year. However, production of 10,720 vehicles marks a 23% decline from Q3 2024.
The concern arises from Rivian’s updated delivery forecast, now expecting between 41,500 and 43,500 total deliveries for the year. This is narrower than the previous estimate and suggests about 10,000 deliveries in the fourth quarter.
Analyst Insights on Rivian’s Future
Many analysts express skepticism about Rivian’s stock trajectory, noting that ongoing revenue and earnings estimates are being revised downward. Canaccord analyst George Gianarikas comments that trends in earnings revisions ultimately affect stock performance.
Market Sentiment and Ratings
Gianarikas rated Rivian stock a Buy, targeting a price of $21, implying a potential 54% increase. Despite this, many analysts maintain a Hold rating on the stock, which includes 12 Holds, 7 Buys, and 4 Sells. The current average price target is $13.78.
Analysts suggest the stock may be close to fully valued, and market interest remains cautiously divided as Rivian navigates an EV industry slowdown.
