Posted 2/28/2024, 11:05:00 AM
Rivian Stock Plummets 38% on Disappointing 2024 Outlook But Bank of America Stays Bullish
- Rivian stock dropped 38% last week after reporting disappointing 2024 production targets of just 57,000 vehicles, similar to 2023
- Bank of America analyst reiterated "buy" rating on Rivian with $25 price target, over 135% upside
- Bank of America cited Rivian's better-than-expected Q4 revenue and not terrible losses as "relatively good"
- Rivian's cash position has dropped to $9.4 billion, carries $5.1 billion in debt, and continues to burn through billions a year
- Motley Fool author believes Rivian unlikely to achieve Bank of America's aggressive price target given high cash burn rate