Connect with us

Hi, what are you looking for?


Rivian downgraded as concerns about cash burn remain

Rivian (NASDAQ: RIVN) received another downgrade on Friday as concerns about the company’s future remains. In a note, analysts at Piper Sandler downgraded their rating of the company from overweight to neutral. They expect that the company, which is a cash incinerator, will need to raise additional capital to implement its current strategy. Precisely, they expect that the company will need to raise $4 billion,.

Analysts have a mixed outlook of Rivian stock.In March, analysts at Needham and Bank of America initiated their coverage with a buy rating. The two expect the shares to jump to $26 and $40, respectively. 

On the other hand, analysts at Mizuho, Evercore ISO, Morgan Stanley, RBC, and DA Davidson all lowered their target. Most of these firms cited the company’s increased cash burn as it lost over $6 billion in 2022.

The most recent Rivian news was its monthly car delivery report. In a note, the company said that it sold 7,946 in the first quarter, which was better than what analysts were expecting. The firm said that the company was on track to produce 50k jobs this year.

Rivian and other EV companies are going through a difficult period. On the positive side, companies are seeing lower production cost as key metals like lithium and nickel have dropped sharply this year. This is an important view considering that batteries are some of the most important parts of EVs.

Meanwhile, there is a price war going on. On Friday, tesla announced that it was cutting its prices of the Model Y and Model 3 by up to 10%. The company has slashed prices several times this year as it seeks to boost its sales.

Rivian stock price has been in a strong bearish trend and is now at the lowest level this year. It crashed by over 4% in the premarket after the rate downgrade.

The post Rivian downgraded as concerns about cash burn remain appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    Rep. Jennifer Wexton (D-Va.) announced on Tuesday that she has been diagnosed with Parkinson’s Disease. “If there’s one thing that Democrats and Republicans can...

    Latest News

    After Dianne Feinstein announced she’d contracted the shingles in early March, her staff said she planned to return to the Senate within a matter...


    A U.S. District Court judge has ruled that Elizabeth Holmes, founder and CEO of the disgraced blood-testing company Theranos, cannot remain free on bail...

    Latest News

    SEOUL, South Korea — When a group of American lawmakers arrived in South Korea for meetings with government and military officials, President Yoon Suk-yeol...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.