On Friday, Truist Securities maintained a Hold rating on Rivian Automotive Inc (NASDAQ:), with a steady price target of $12.00. The firm’s analyst acknowledged Rivian’s fourth quarter production and delivery figures, which surpassed Wall Street’s expectations by 11% and 6% respectively.

According to InvestingPro data, while Rivian maintains strong liquidity with a current ratio of 5.09, the company faces significant profitability challenges with a -43.4% gross profit margin. The positive performance follows a period of supplier issues in the third quarter that significantly impacted the production of the company’s Enduro motor.

Rivian successfully met its full-year 2024 guidance, a notable achievement considering the past production challenges. With the supplier concerns resolved, attention shifts to Rivian’s ability to progress towards profitability. Truist Securities anticipates only modest year-over-year growth for fiscal year 2025, leading up to the planned 2026 launch of the R2 model at the company’s Normal facility.

The recent comments from the incoming administration regarding the potential elimination of the Passenger EV tax credit add a layer of uncertainty to the electric vehicle market. Truist Securities is looking forward to Rivian’s fourth-quarter earnings release and 2025 guidance, which will provide further insight into whether the fourth-quarter numbers were influenced by a demand pull forward.

The analyst expects Rivian shares to respond well to the recent production and delivery report. However, the firm’s focus remains on the upcoming earnings release in February, which will offer more detailed guidance and management commentary for the fiscal year 2025.

In other recent news, Rivian Automotive has achieved its production and delivery targets for 2024, with a total of 49,476 vehicles produced and 51,579 delivered. The company resolved component shortage issues that previously impacted production. This development was met with positive reactions from analysts, with ten revising their earnings upwards for the upcoming period. The company’s fourth-quarter financial results are scheduled for release soon.

In labor relations, Rivian has entered a confidential agreement with the United Auto Workers, paving the way for possible unionization at its Illinois factory, contingent on the company achieving profitability. This agreement could also facilitate a $6.6 billion conditional loan from the US Energy Department for a new EV plant construction in Georgia.

Analyst firms have been closely monitoring Rivian. Goldman Sachs maintained a Neutral rating, emphasizing the company’s focus on digital flexibility and innovation. Meanwhile, Benchmark initiated coverage with a Buy rating.

In contrast to Rivian’s positive developments, the incoming U.S. President Donald Trump’s transition team is proposing policy changes that could end support for electric vehicles and charging infrastructure. This could potentially affect the strategies of major automakers, including General Motors (NYSE:) and Hyundai (OTC:), who have recently expanded their electric vehicle offerings in the American market.

Finally, in the broader auto sector, Bernstein noted strong tailwinds for Ford (NYSE:) and General Motors, despite aggressive discounting by competitor Stellantis (NYSE:). Stellantis, however, is facing challenges with November sales down 9%, though it maintains strong fundamentals with a P/E ratio of 2.82 and offers an attractive 9.01% dividend yield.

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