Market analysts have mixed Rivian Stock Price predictions and price trends in 2023 and beyond. While some believe the company’s stock price is taking an upward trend, others predict a value lower than the current market price in the future.
Rivian Automotive has emerged as a major player in the electric vehicle market, backed by substantial investments from big players like Amazon and Ford. However, the company faces significant challenges.
In this article, we’ll explore the Rivian Automotive stock price dynamics, challenges, and future worth.
If you want to invest in Rivian Automotive, find out the future share price forecast based on current performance and historical data.
What is Rivian automotive?
Rivian Automotive is an American electric vehicle manufacturer and automotive technology company. Founded in 2009 by its CEO, Robert Joseph Scaringe, the company has its headquarters i n California.
The company has eight branches in different parts of the United States.
Rivian produces electric-powered trucks (R1T), all-electric SUVs (R1S), and the new electric bike. This Automotive company seeks to conserve the environment by developing electric vehicles (EV), bikes, and EV inputs.
Different shareholders have financed the company. T. Rowe Price Associates, The Vanguard Group Inc., and Capital Research & Management are among the major shareholders of Rivian Automotive company.
Rivian stock performance
The Rivian share price has been downward since its IPO in September 2021. With a 14.54% fall in price in the last month, the company resolved to issue convertible notes to raise an additional $1.3 billion in cash.
This negatively impacts the current investors’ funds as the share value depreciates with the introduction of the green convertible note.
But how is the company performing in the global stock market?
The company’s stock price was $14.64 (-$2.49) at the close of business on 7th march 2023. This was a 14.54% price decrease after the company intended to issue green notes (convertible notes) to the public.
With a downward trend since the company went public in September 2021, the current investors have not enjoyed much profit.
On March 13, 2023, the market closed with Rivian’s share price standing at $13.73 (-0.73), a further -3.04% decline.
The stock market chart analysis in 2022 and 2023
The Rivian stock share price declined in the last quarter of 2022. The same trend continues in the first quarter of 2023. During this period, the share price decreased from $31 in November 2022 to $13.32 in March 2023.
The company faces unfavorable market conditions in the above case as investors sell their shares. Consequently, a high supply and low demand will lead to a further price decrease.
Investor funding for Rivian is decreasing, indicating a potential future decline in the company’s financial performance.
The market performance for Rivian stock for the last year exhibits a mixed trend. An upward trend for the first quarter of the year that shifted downwards and maintained stability up to the last quarter. However, a downward trend appears towards the end of the last quarter.
The stock price of Rivian Automotive as of March 2022 was $37.74. Although the stock experienced an upward trend for the first quarter of the year, it dropped to $13.80 at the start of March 2023. This translates to about a 63.4% price decline in one year.
Generally, the Rivian stock performance has not favored traders in the past year due to a one-direction trend for the last three quarters.
What caused the Rivian stock price drop in 2022?
The company recalled about 13000 vehicles in October 2022 due to a possible steering wheel defect. This planted fear among investors causing the share price to drop.
In May of the same year, the company discovered that approximately 500 vehicles were experiencing airbag malfunctions, which led to a recall. This latest recall follows the previous one.
In a single year, two incidents of recall dealt a major blow to investor trust in the company, resulting in a drop in stock sales and reduced interest from investors and businesses.
Rivian stock price prediction 2024
According to Trade View, 19 analysts offering a one-year Rivian stock price prediction have set a high of 44.00 and a 16.00 low. This translates to about a $28.42 price target. However, this is only possible if all factors work in favor of the investor in the next trade year.
The electric vehicle price increment due to demand and subsequent drop in sales are some of the factors that may work against the price target in 2024. Furthermore, there has been an increase in electric vehicle stocks from other dealers and high valuations in the electric automotive market.
With the ongoing global recession, financial institutions have experienced high inflation levels and extreme interest rates from lending bodies. These effects impact price fluctuations with few investors willing to take the risk.
Moreover, the middle class cannot purchase EVs due to high lending rates from lenders.
The green convertible note: Will it affect the Rivian stock price?
Rivian Automobile recently announced the issuance and sale of green notes to help it raise $1.3 from March 10, 2023. The green notes will help raise the company capitation at a 4.265% per annum interest rate. According to the announcement, the interest is payable semi-annually in March and September.
The company estimates $1,286.1 million in proceeds after discounts and commissions. Since Rivian will not register the green notes under the securities ACT, they remain unsecured.
How will they impact the Rivian stock price prediction in 2023 and beyond?
The green notes will offer an attractive option to most investors, both in retail and institutional, to invest in the financial market. Although not all investors will embrace this opportunity, those seeking environmental, social, and governance (ESG) based income will likely welcome the move.
Environmental conservation and greenhouse effect eradication is the primary mission of Rivian Automobiles. These will draw investors keen on environmental conservation by buying the green notes. However, this may work to the disadvantage of current investors.
In the long run, the stock price may decrease and cause losses to existing, shareholders while helping the company to raise funds.
Impact of the green note on investors
The green note offers the company a viable way to boost their capitation and repay in the future as shares. This will enable the company to run its operations smoothly without worrying about debt repayment. Unfortunately, the move is not so great for investors.
As the green notes convert into shares, the share value decreases for the existing investors. Eventually, the share worth will decrease depending on the additional funds raised. This disadvantages the shareholders since the company’s profit may not compensate for the share value loss.
Furthermore, market analysts have indicated that the company may not make a meaningful profit until 2030. This rises from the annual compensation of the new investors on the green notes. An existing investor, therefore, has to wait for seven years to experience a positive impact from their investment.
While ESG enthusiasts may choose to wait for that long, some investors are impatient. The latter will opt out amid losses causing a shift towards ‘sell.’ This shift will lower market demand, leading to low stock prices.
Bullish or Bearish? Rivian stock market analysis
Although the Rivian stock market has been on a downward trend nearly 85% of the time, there are times when it experiences an upward trend. This makes the market both bearish and bullish.
The bull case
Investors in the stock market speculate on price fluctuations in the future to earn profit. Owing to the longtime downtrend for the Rivian stocks, there has been a constant drop in price. This implies a possible shift in trend as new investors acquire the shares at a low price.
With the green note investment, investors who believe in share price growth in the future will take the risk. Furthermore, the company has acquired more funds to improve its operations and introduce new products to the market.
The company’s profits will grow with the tech innovations in place, such as battery cooling technology and improved electric bikes. Growth in share profit will attract more investors making the market bullish.
The bear case
Investors remain optimistic about the Rivian stock price prediction despite the challenging market conditions. It plans to introduce innovative features and expand its production capacity to stay ahead of the competition.
The management is also exploring strategic partnerships and acquisitions to fuel growth and boost profitability. While there are no guarantees in the business world, the company’s long-term vision and commitment to sustainability bode well for its success.
Rivian stock price prediction for 2025
Rivian is a promising electric vehicle company that has gained much attention and investor interest in recent years. With their innovative designs and focus on sustainability, many are curious about the future of their stock price.
According to the latest predictions from Panda Forecast, Rivian’s stock price is expected to continue its upward trend and reach $32.35 by January 2025. This represents a significant increase of approximately 58% over the current stock price.
However, it is worth noting that there are varying opinions on the potential future value of Rivian’s stock. The highest price target is $56.76, while the lowest is $18.42. This average of $18.44 is equivalent to the last 50 days moving average.
Of course, whether Rivian can achieve these targets largely depends on the company’s ability to meet its annual targets and goals. One example is the company’s aim to supply 25,000 vehicles to Amazon each year, a target that has yet to be met.
Improvements Rivian automotive can make to achieve targets by 2030
Rivian automotive needs to put measures in place to achieve this target, such as:
- Increasing the number of plants. One cause of failure to meet its annual targets is the few branches that the company has. This is achievable as the company plans to open a new plant in Georgia, enabling it to produce 0.6 million vehicles in 2024.
- Fulfill the pledge to supply Amazon with 100,000 EDVs. With the company’s expansion, Rivian can meet the target supply of vehicles to Amazon and other affiliates. In addition, it will reduce the R1T pre-orders hence growing its annual sales.
- Invest in tech and innovation. Customer preference for automobiles is as dynamic as technology is. Therefore, Rivian should invest in innovations to produce new models and gain a competitive advantage in the global market. In addition to the current models in the market, the company plans to roll out R2 vehicles by 2026.
While the above moves are necessary for achieving the Rivian stock price increase by 2030, the company faces many challenges, such as low production, sales, and investor confidence.
The current investors have experienced a continuous downtrend for one year, which may continue. To retain them and attract new ones, the company has to improve its price-to-sales ratio.
Furthermore, hitting the target annual production requires more financial and manpower input. This calls for more investors who must analyze the market trends before taking risks.
Lastly, key players in Asian countries like China have invested in innovation and tapped the best talent in the field. Rivian Automobile must invest in tapping and growing talent to improve productivity and gain a competitive advantage.
While putting the above measures in place is difficult, implementing them gradually is possible. Therefore, the $135 Rivian stock price prediction 2030 remains the company’s responsibility. With one milestone at a time, the target price is achievable.
Conclusion
Market analysts have predicted the Rivian stock Price to rise to $135-$145 by 2030. This increment amounts to a 40%-50% CAGR with about 1 million vehicles sold annually.
While this Rivian stock price prediction is achievable, it requires a lot of input from the company and remarkable yearly strides.
A major way to hit this target is by producing 1 million vehicles annually. This will earn the company $75 billion in revenue up from $1.8 in 2022. If the company meets this requirement, the cost of shares will increase by about ten times the current value.
