Rivian Automotive, Inc. (RIVN) has informed customers that it will not be able to deliver the pickup trucks and SUVs with max pack batteries until 2023, according to a report by Electrek. The company designs, develops and manufactures electric vehicles and accessories.
Shares of Rivian declined 2.4% in the pre-market trading session on Wednesday.
In a letter to customers, the company said that it has about 71,000 preorders for the R1T and R1S in the US and Canada, of which about 20% have chosen max pack batteries. Thus, in order to serve a larger customer base, the company will be first targeting to build large pack batteries in 2022 and max pack in 2023.
Rivian’s large battery pack is said to give 314 miles of range, whereas the max pack gives 400 miles of range on a single charge.
Rivian shared this information with its clients in case they want to change their configurations to get a delivery sooner. The customers will likely be updated about the delivery timelines in early 2022.
On December 17, Wells Fargo analyst Colin Langan reiterated a Hold rating on Rivian with a price target of $110, which implies 6.9% upside potential to current levels.
Langan noted, “Rivian saw an increase in preorders from 48k ending September to 71k currently. This is largely expected given the media attention around the large IPO. The strong order book provides support for the production ramp, though does add pressure to get vehicles to customers that may get impatient as current R1 orders won’t be ready until the end of 2023 according to the company.”
Overall, the stock has a Moderate Buy consensus rating based on 10 Buys and 4 Holds. The Rivian price target of $134.64 implies 30.88% upside potential.
Positive Investors Sentiment
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Rivian, with 39.1% of investors on TipRanks increasing their exposure to RIVN stock over the past 30 days.