StockStory Flags Rivian’s Falling Deliveries and Cash Needs
The publisher points to lower vehicle deliveries, heavy cash use and debt as reasons for caution on Rivian shares.
StockStory said Rivian’s falling deliveries and heavy cash use make it cautious on the electric-vehicle maker. The publisher cited 12,194 vehicles delivered in the latest quarter, with deliveries down 9.2% annually over the past two years.
The analysis said weaker volumes may point to rising competition or market saturation. It also warned that price cuts or spending on product improvements could weigh on near-term profitability.
StockStory said Rivian’s free cash flow margin averaged negative 114% over the past five years. That equated to $113.98 in cash used for every $100 of revenue, according to the publisher.
The company used $3.49 billion in cash over the past year, while its debt stood at $6.78 billion and cash on hand at $5.31 billion. StockStory said that gap raises the possibility Rivian may need to raise capital, which could dilute existing shareholders.
The publisher said it would remain cautious until Rivian generates consistent free cash flow or announced financing plans appear on its balance sheet. It described the shares as trading at $15.05, or two times forward sales, and said the market expects Rivian to lose money over the next 12 months.
This article was produced with the help of AI technology.
Source: Yahoo Finance
