Rivian Faces Uphill Battle to Regain Lost Value After 93% Share Price Plunge
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Rivian's stock has dropped from a peak market cap of $153 billion after its IPO to $11 billion today due to production issues and a cooling EV market.
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Rivian aims to improve margins and reach positive gross margins by Q4 2024, but faces headwinds like supply chain constraints and competition.
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Analysts estimate Rivian's revenue growth to accelerate from 2023's $4.4 billion to $12.2 billion in 2025, implying a 40% CAGR.
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If Rivian can sustain a 20-40% revenue CAGR to 2035 and trade at 2-4x sales, its market cap could top $100 billion again.
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But Rivian still faces tough trials over the next few years and needs to successfully scale up production to drive growth.