mkg3
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Total float is roughly 680M shares. During the two days after the earnings call, roughly 320M shares turned over or roughly 50%.
Those still holding on probably are taking wait and see or that they still believe in Rivian; hence, small recovery over the last couple of days, including today so far.
Rivian has about 14.8% short interest or about 101M share (of the total outstanding, which is about 977M shares).
So it's all likely that Rivian is a trade, not an investment until the story changes. Probably will be a spike leading up to R2 reveal, then sell off back down.
Here is new note from Morgan Stanley lowering the price target. The key in this note is that they had a follow up call with Rivian after the earrings to get further info:
12:01 PM EST, 02/27/2024 (MT Newswires) -- Rivian Automotive (RIVN) is entering its "crisis" mode and will need to execute on costs, collaboration, and capital discipline for a turnaround, Morgan Stanley said in a note.
"Following Q4 earnings, and our follow-up call with management, we were left with a clear impression of a heightened sense of urgency with respect to the need for the company to attack costs and to remain flexible in terms of strategy," the investment firm said . Morgan Stanley noted that Rivian Automotive (RIVN) could face challenges in growing its top line amid a slowdown in the electric vehicle market.
Morgan Stanley said it expects further reduction in the company's unit costs this year and Q4 could see a breakeven in gross margin, but this would require "substantial" re-engineering in its vehicle models and improvements to material costs and purchased components.
The investment firm also noted that Rivian could reconsider its capital spending given the current landscape of the electric vehicle market. The company could also explore collaborating with peers to share costs and improve efficiencies, Morgan Stanley added.
Morgan Stanley reiterated its overweight rating on Rivian Automotive (RIVN), whiling lowering its price target to $14 from $24.
Those still holding on probably are taking wait and see or that they still believe in Rivian; hence, small recovery over the last couple of days, including today so far.
Rivian has about 14.8% short interest or about 101M share (of the total outstanding, which is about 977M shares).
So it's all likely that Rivian is a trade, not an investment until the story changes. Probably will be a spike leading up to R2 reveal, then sell off back down.
Here is new note from Morgan Stanley lowering the price target. The key in this note is that they had a follow up call with Rivian after the earrings to get further info:
12:01 PM EST, 02/27/2024 (MT Newswires) -- Rivian Automotive (RIVN) is entering its "crisis" mode and will need to execute on costs, collaboration, and capital discipline for a turnaround, Morgan Stanley said in a note.
"Following Q4 earnings, and our follow-up call with management, we were left with a clear impression of a heightened sense of urgency with respect to the need for the company to attack costs and to remain flexible in terms of strategy," the investment firm said . Morgan Stanley noted that Rivian Automotive (RIVN) could face challenges in growing its top line amid a slowdown in the electric vehicle market.
Morgan Stanley said it expects further reduction in the company's unit costs this year and Q4 could see a breakeven in gross margin, but this would require "substantial" re-engineering in its vehicle models and improvements to material costs and purchased components.
The investment firm also noted that Rivian could reconsider its capital spending given the current landscape of the electric vehicle market. The company could also explore collaborating with peers to share costs and improve efficiencies, Morgan Stanley added.
Morgan Stanley reiterated its overweight rating on Rivian Automotive (RIVN), whiling lowering its price target to $14 from $24.
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