Rivian Beats Q1 Estimates But Falls Short of Q4 Numbers; Analysts Split on Outlook Given Production Risks and Cost Reduction Efforts

Rivian delivered 13,588 vehicles in Q1 2022, beating estimates but falling slightly short of Q4 2021 production numbers. The company reiterated its 57,000 vehicle production target for 2022.

Analyst Ben Kallo believes Rivian's plans to produce the R2 vehicle at its Illinois plant rather than Georgia could yield over $2B in cost savings and support further financing. He has a Buy rating and $23 price target.

Analyst Joseph Spak remains concerned about demand for Rivian's high-priced R1 vehicles and sees production risks from plant downtime. He has a Sell rating and $9 price target.

The average analyst price target is $17.67, suggesting 65% upside potential over the next year.

Rivian faces production risks but cost reduction efforts could help it achieve positive gross profit per vehicle by late 2024.