$Rivian Automotive(RIVN.US) -5% AH after posting worse than expected 2Q EBITDA (-$667M vs -$493M est) and guiding to higher FY’25 EBITDA losses (-$2.0B to -$2.25B EBITDA guidance vs -1.7B to -$1.9B EBITDA guidance prior). RIVN disclosed that “recent policy actions have had and are expected to continue to have an impact on its results and cash flows of its business.”
RIVN reaffirmed its FY’25 delivery forecast of 40-46K (WS ests 42.9K). RIVN mgmt said on the conf call they no longer expect to earn revenue on the sale of reg credits for the remainder of 2025 (total FY’24 ZEV sales were $307M). After two consecutive quarters of positive gross margins, RIVN against lost money on every EV it sold in 2Q with -15.8% auto gross margins. Mgmt guided on the call to break-even gross margins for FY’25. We believe $Rivian Automotive(RIVN.US) stock will continue to trend lower (-9% YTD, -17% over 1 year) as analysts reduce 2H estimates. Despite poor fundamentals, we would not be inclined to short RIVN given a 19% short interest ratio.The copyright of this article belongs to the original author/organization.
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