Rivian Stock Plunges After Brutal Q2 Earnings and Weak Outlook

Aug 6 - Rivian Automotive RIVN dipped more than 3% on Wednesday after posting mixed Q2 results that left Wall Street unimpressed. The EV maker reported a loss of $0.97 per share, missing consensus expectations by $0.32, though revenue came in slightly ahead at $1.30 billion versus the expected $1.27 billion, a 12.5% year-over-year increase.

The revenue beat didn't do much to soften the blow of the wider-than-expected loss, as investors responded with a sell-off that pushed shares down to $12.00 during mid-day trading. Adding to the market's hesitation, the company continues to burn cash aggressively, with negative margins and return on equity weighing heavily on investor sentiment.

Analyst ratings remain mixed, with a wide price target range from $12 to $18 and a consensus near $14.30. Insider selling by Rivian's CEO and CFO in recent months also added downward pressure, even as institutional ownership remains strong.

While Rivian's long-term vision in EVs and autonomous tech continues to attract attention, the company faces mounting challenges balancing growth and profitability in a capital-intensive space.