Rivian Automotive Share Price Forecast November 2021 – Time to Buy RIVN?
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Shares of American electric vehicle automaker and automotive technology company Rivian Automotive (NASDAQ: RIVN) are in the red today, closing at $114.85 as of November 24th (19:59 EST). Rivian has captured the market’s imagination like no other EV start-up can. Eventhough the shares more than doubled from their IPO price of $78, they have since fallen sharply from those highs.
Rivian Automotive – Technical Analysis
Rivian Automotive’s financial statement indicates a market cap of $99.722 billion with total assets worth $4.602 billion. The company registered a net income of -$1.02 billion in 2020 compared to – $426 million in 2019.
Moving averages such as Exponential Moving Average (10)(128.15) and Simple Moving Average (10)(132.52) are indicating a sell action. On the other hand, oscillators such as the Momentum indicator are showing a buy action.
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Recent Developments
Since its IPO, Rivian is well-positioned to compete against the likes of Tesla and other EV manufacturers. It raised almost $11 billion from investors before going public after which it secured $12 billion in new capital. Rivian has initial orders for at least R1Ts and R1S SUVs lined up. All of these will be built in Normal, Illinois, along with 100,000 electric delivery trucks for Amazon. The company is also planning a second production facility in Georgia.
Initially known as Mainstream Motors and then, Avera Automotive, Rivian Automotive was founded in 2009 by CEO Robert “RJ” Scaringe. After receiving a substantially large investment in 2015, the company opened research facilities in the Bay Area and Michigan. Rivian initially planned to begin shipments of the R1T in June 2021, which was eventually delayed due to the global shortage of chips. It then became the first company to bring a fully electric pickup to the consumer market, ahead of Ford, Tesla and GM. The company started delivering the R1Ttruck in October 2021.
Earlier this month, Laura Schwab, Rivian’s former sales and marketing vice president alleged that she was terminated after raising concerns of gender-based discrimination in the company. The company also moved away from Ford on November 19, 2021, after previously agreeing to co-develop an electric vehicle. Ford has retained its 12% stake in Rivian, which has reached more than $10 billion in valuation. Amazon also has a 22% stake in the company after recently purchasing an additional $200 million worth of shares.
Should You Buy RIVN Shares?
Investors have to consider the already competitive EV market, where traditional vehicle brands like Ford and GM compete against EV brands like Rivian and Tesla. There is minimal historical data to help predict performance as EVs are still a new concept to many. Price is also another concern as Ford is launching a pickup truck for around $30,000 less than Rivian’s comparable model.
To accurately measure Rivian’s future prospects, investors should look to Tesla for comparison. While Tesla averaged $30 to $75 5 years ago, it has now priced at more than $700 per share. Thus, investors should realise that Rivian is a long-term commitment rather than a get-rich-quick scheme. They should take into account any growing pains that the company might experience in its first year.
Investors have plenty of reasons to question Rivian’s share price valuation, as it hasn’t proven its ability to build vehicles at scale. However, along with a formidable brand and platforms to build on, the company’s business model that’s disrupting all the right places of the auto business.
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