Each Rivian Shareholder Needs to Monitor This Particular Figure Thoroughly
In the approaching years, Rivian Automotive (dropping 2.78% as RIVN) might join the ranks of the legendary Tesla. With a slew of new mass-market vehicles set to debut in 2026, Rivian's sales trajectory could mirror Tesla's when it debuted its mass-market models, potentially opening the door to significant growth.
For now, one figure captures my attention, and we should hear updates on it in a few months' time.
This may be the most significant figure in Rivian's history
To become like Tesla, Rivian needs to meet several key challenges. It must escalate its production facilities, deliver its new mass-market vehicles to customers punctually, and preserve the level of quality that has defined the company so far. Only then may its sales trajectory bear a striking resemblance to Tesla's history.
However, before this happens, investor confidence in Rivian's success is vital. Despite surpassing $5 billion in sales in 2022, Rivian was still losing money on every vehicle sold. Over the last year alone, the company incurred a massive gross loss of almost $2 billion. Many electric vehicle stocks have fallen by the wayside financially over the years. If Rivian falters, it could witness its resources dwindling at any moment, thwarting its long-term ambitions.
But there could be fantastic news in the near future.
In the early stages of 2023, Rivian's top brass projected that the company would achieve positive gross profits by the end of 2024. To accomplish this without any further adjustments would be unprecedented, given that Rivian still lost nearly $40,000 on every vehicle sold in the last quarter. Bridging the gap to zero within just 90 days would be nothing short of marvelous.
If Rivian manages to secure positive gross profits this quarter, investor sentiment is likely to shift considerably, as the company's future would become more transparent. We'll learn more in a few months.
To boost investor confidence and secure its financial future, Rivian needs to achieve positive gross profits. If successful, this milestone could significantly improve Rivian's financial standing in the finance world, attracting more investors and potentially reducing reliance on external funding for expanding its operations and investing in new projects.
As Rivian's financial health improves, it could explore new opportunities for expanding its business, such as diversifying into additional markets or investing in advanced technologies, further enhancing its competitiveness in the electric vehicle industry.
