Rivian’s Disastrous Guidance: Is There Any Hope Left?
📉 Rivian reported Q1 revenues of $1.24 billion, beating estimates, but issued a disastrously low delivery guidance of 40,000-46,000 vehicles for 2025, a major concern after years of similar underperformance.
💸 The company achieved a positive gross profit of $206 million, yet this doesn't translate to net profit. Capex is guided at $1.8-$1.9 billion, with tariffs expected to impact each vehicle by about $3,000.
🛠️ Despite over $22,600 in cost savings per vehicle delivered in Q1 YoY, Rivian is still building inventory, and its overall outlook remains challenging, prompting a negative market reaction and analyst sentiment.
Rivian’s Roadblock: Management Under Fire
📉 The speaker expresses strong dissatisfaction with Rivian's management team, calling their performance 'pessimistic'.
stagnated production guidance around 50,000 vehicles for three years indicates a significant lack of growth for a company expected to expand.
❓ The lack of production growth raises serious questions about the company's execution and future prospects despite the speaker previously liking the stock.
