Rivian stock  (NASDAQ:RIVN) rose 14% on October 4 after the electric vehicle, SUV, and van manufacturer released its latest production figures.

Rivian’s Primary Business

Rivian offers three vehicles: the R1T pickup truck, the R1S SUV, and an Amazon-branded electric delivery van (EDV). The e-commerce behemoth is a significant investor in Rivian and has previously ordered 100,000 Rivian EDVs to be completely delivered by 2030. Rivian began shipping R1T pickups soon before its IPO, and it delivered its first batch of EDVs to Amazon in July. However, the initial deliveries of its R1S SUVs have been pushed back from the anticipated mid-2021 launch date to late 2022.

Rivian’s Primary Difficulties

Rivian’s automobiles have a lot of unmet demand. Rivian had received around 98,000 preorders for their R1 cars by the end of the second quarter of 2022, in addition to its first EDV purchase from Amazon. However, continued chip shortages and supply chain issues have ramped up manufacturing challenges.

As a result, Rivian postponed the R1S’s introduction and reduced its planned manufacturing goal of 50,000 cars in 2022 to 25,000 earlier this year. That’s also why Ford, another key investor, abandoned its highly monitored efforts to produce an electric vehicle with Rivian in November.

Rivian, on the other hand, recently formed a joint venture with Mercedes-Benz to co-develop electric vans. This recent agreement is a significant vote of confidence in Rivian’s capabilities and may persuade other manufacturers to form similar EV agreements with the business in the future.

Cash Flows and Values for Rivian

Rivian has been scaling up manufacturing more effectively than many other start-up EV manufacturers. Its choice to go public via a standard IPO rather than merging with a SPAC and seeking to entice investors with false long-term expectations may help make it a more trustworthy firm.

Rivian Stock is an Appealing But Risky Gamble.

Rivian stock (NASDAQ:RIVN) is a good option in the expanding EV sector. It is experiencing supply chain challenges, but it is still committed to its production objectives, and there is still plenty of unmet demand for its cars. Its backing from Amazon, Ford, and now Mercedes-Benz suggests that it will outlast its competitors in the business. While unpredictable and risky, Rivian stock (NASDAQ:RIVN) is worth considering at this significant discount to its IPO price.

Featured Image-  Megapixl @ Michaelvi

Please See Disclaimer