Rivian Q1 deliveries better than expected, says Deutsche Bank

Deutsche Bank analyst Emmanuel Rosner says Rivian Automotive’s 13,588 deliveries in Q1 was better than management’s initial commentary calling for a 10%-15% decline in volume quarter-over-quarter as well as Deutsche’s estimate of 12,200 units. While the volume performance was ahead of expectations, this shouldn’t come as a significant surprise, given the R1 re-rate shut down will not start until Q2, the analyst tells investors in a research note. The firm continues to see downside risk to Rivian’s outlook for positive gross margin exiting 2024 and expects deeper E+BITDA losses. It has a Hold rating on the shares with a $15 price target.