Cantor Reiterates Neutral on Rivian (RIVN) Amid Weak Delivery Guidance and Margin Pressure

Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the High Flying AI Stocks This Week. On August 6, Cantor Fitzgerald analyst Andres Sheppard reiterated a Neutral rating on the stock with a $15.00 price target.

Cantor has acknowledged that Rivian benefits from its Amazon commercial partnership, strategic joint venture with Volkswagen, and differentiated product offering including R1, EDVs, and the upcoming R2 vehicles.

The R2 line is particularly going to act as a meaningful catalyst, driving higher customer demand due to a more competitive price point.

The management is, however, discouraged by the company’s FY25 delivery guidance.

“However, while management disclosed that it expects Q3 deliveries to be its highest for the year, we remain discouraged by the company’s FY25 delivery guidance of 40,000 – 46,000 vehicles, which is lower than FY24 deliveries, and by the disappointing Gross Margin, which came way below expectations.”

The firm also discussed several factors driving their neutral stance, although it is excited about Rivian’s emphasis on autonomy in the upcoming Autonomy/AI investor day in Q4.

“Overall, we remain Neutral in the near term, driven by lower delivery expectations, worsening macro conditions, tariff uncertainty, the removal of the $7,500 EV Tax Credit, and uncertainty regarding the company’s autonomy and charging segments (which have yet to be quantified by management).”

Rivian Automotive, Inc. (NASDAQ:RIVN) is an automaker that creates and manufactures electric vehicles, as well as software and services.

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Disclosure: None.