Editing Rivian Automotive, Inc.

{{Infobox company
| name = Rivian Automotive, Inc.
| logo = Rivian logo and wordmark.svg
| caption = 
| former_name = {{Unbulleted list
  | Mainstream Motors
  | Avera Automotive
  }}
| type = [[Public company]]
| traded_as = {{ubl|{{Nasdaq|RIVN}} (Class A)|[[Russell 1000]] component}}
| ISIN = {{ISIN|sl=n|pl=y|US76954A1034}}
| fate = 
| successor = 
| founded = {{Start date and age|2009|6}}
| founder = [[R. J. Scaringe]]
| defunct = 
| hq_location_city = [[Irvine, California]]
| hq_location_country = U.S.<ref name="bloomberg-20210914">{{Cite web |last=Ludlow |first=Edward |date=September 14, 2021 |title=Rivian Gets U.S. Regulatory Go-Ahead to Deliver EVs to Customers |url=https://www.bloomberg.com/news/articles/2021-09-15/rivian-gets-u-s-regulatory-go-ahead-to-deliver-evs-to-customers |url-access=subscription |url-status=live |archive-url=https://web.archive.org/web/20211022210959/https://www.bloomberg.com/news/articles/2021-09-15/rivian-gets-u-s-regulatory-go-ahead-to-deliver-evs-to-customers |archive-date=October 22, 2021 |access-date=October 29, 2021 |website=[[Bloomberg News]]}}</ref>
| locations = 51 service centers (2022)
| area_served = Canada<br />United States
| key_people = {{Unbulleted list
  | R. J. Scaringe (CEO)
}}
| industry = {{Unbulleted list
  | [[Automotive industry|Automotive]]
  | [[Energy storage]]
}}
| products = {{Unbulleted list
  | [[Electric car|Electric vehicles]]
  | [[Car battery|Batteries]]
}}
| production = {{increase}} 24,337 vehicles (2022)
| services = {{Unbulleted list
  | [[Electric vehicle charging network|Electric vehicle charging]]<ref>{{Cite web |title=Charging – Rivian |url=https://rivian.com/experience/charging |access-date=December 10, 2021 |website=Rivian |language=en}}</ref>
  | [[Vehicle insurance]]<ref>{{Cite web |title=Insurance – Rivian |url=https://rivian.com/support/article/what-is-rivian-insurance |access-date=April 21, 2022 |website=Rivian |language=en}}</ref>}}
| revenue = {{increase}} {{US$|1.66|link=yes}}&nbsp;billion (2022)
| operating_income = {{decrease}} {{US$|-6.8}}&nbsp;billion (2022)
| net_income = {{decrease}} {{US$|-6.7}}&nbsp;billion (2022)
| assets = {{decrease}} {{US$|17.9}}&nbsp;billion (2022)
| equity = {{nowrap|{{decrease}} {{US$|13.8}}&nbsp;billion (2022)}}
| owner = {{Unbulleted list |class=nowrap
  | [[Amazon (company)|Amazon]] (18.1%)
  | [[Abdul Latif Jameel]] (12.7%)
  }}
| num_employees = 14,122
| num_employees_year = December 2022
| parent = 
| divisions = 
| subsid = 
| website = {{Official URL}}
| footnotes = <ref>{{cite web |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1874178/000187417823000009/rivn-20221231.htm |title=Rivian Automotive, Inc. 2022 Annual Report (Form 10-K) |date=February 28, 2023 |publisher=[[U.S. Securities and Exchange Commission]]}}</ref><ref name="Rivian-service-centers">{{cite web |title=Where are Rivian Service Centers located? |url=https://rivian.com/support/article/where-are-rivian-service-centers-located |website=Rivian |language=en |access-date=August 31, 2022 |url-status=live}}</ref>
}}

Rivian Automotive, Inc. designs, develops, manufactures, and sells electric vehicles and accessories. The company offers five-passenger pickup trucks and sports utility vehicles. It provides Rivian Commercial Vehicle platform for electric Delivery Van with collaboration with Amazon.com. The company sells its products directly to customers in the consumer and commercial markets. Rivian Automotive, Inc. was founded in 2009 and is based in San Jose, California.

==<big>Macro Analysis</big>==
Rivian is an electric vehicle (EV) maker that is still in its early stages of growth. The company is facing a number of macro-economic challenges, including:

* Rising raw material costs: The price of lithium, a key component in EV batteries, has been rising sharply in recent months. This is due to a number of factors, including increased demand from the EV industry and supply chain disruptions. Rising raw material costs could put pressure on Rivian's margins and make it more difficult for the company to compete with established automakers.
* Inflation: Inflation is also a major concern for Rivian. The company's costs are rising across the board, from labor to transportation. This could make it more difficult for Rivian to maintain its current pricing, which could hurt demand for its vehicles.
* Supply chain disruptions: The global supply chain has been disrupted by the COVID-19 pandemic and the war in Ukraine. This has made it difficult for Rivian to get the parts it needs to build its vehicles. Supply chain disruptions could delay the launch of new models and make it more difficult for Rivian to meet demand.

Despite these challenges, Rivian is well-positioned to succeed in the long term. The company has a strong team of experienced automotive engineers and executives. Rivian also has a number of major partnerships, including one with Amazon, which has ordered 100,000 electric vans from the company.

If Rivian can overcome the challenges it faces in the near term, it has the potential to be a major player in the EV industry. The company is well-positioned to capitalize on the growing demand for EVs in the United States and around the world.

Here are some additional factors that could affect Rivian in the macro environment:

* Government policies: Government policies, such as subsidies for EVs and regulations on emissions, could have a significant impact on Rivian's business.
* Competition: The EV industry is becoming increasingly competitive, with new entrants entering the market all the time. Rivian will need to differentiate itself from its competitors in order to be successful.
* Consumer sentiment: Consumer sentiment towards EVs is also important. If consumers become more interested in EVs, it could boost demand for Rivian's vehicles.

Overall, the macro environment presents both challenges and opportunities for Rivian. The company will need to carefully manage these factors in order to be successful in the long term.

==Industry Overview==
===='''Electric Vehicle Market'''  ====
The automotive industry is undergoing a transformation as a result of increased environmental awareness and the need for sustainable transportation solutions. Electric vehicles (EVs) have emerged as a critical component of the industry's future as part of this shift.  

The global market for electric vehicles has experienced significant growth over the past decade and projected to grow at a compound annual growth rate of 10.07% between 2023 and 2028. Factors such as advancements in battery technology, government incentives, and increasing environmental awareness have contributed to the rising adoption of EVs. Governments around the world are actively promoting the adoption of EVs through various policy measures, such as the plug-in grant in the UK and tax incentives in the US.  
===='''Competitive Landscape'''  ====
The marketplace for electric vehicles is highly competitive, with both established automotive titans and new entrants competing for market share. The market is heavily dominated by Tesla, which exclusively produces electric vehicles. As one of the market's pioneering electric car manufacturers, Tesla has played a vital role in defining and popularising EVs. The success of the company encouraged other players to increase their efforts to compete in the growing EV industry.

Rivian also competes with traditional automakers, such as Volkswagen, that have recently begun to launch their own electric vehicle models. Established manufacturers have introduced electric cars into their existing lineups through utilising their experience, brand familiarity, and substantial distribution networks. Newer entrants, on the other hand, have the advantage of starting from scratch, allowing them to design cutting-edge electric vehicles without the limits of legacy technology.
==Competitor Comparison==
Competition in the electric automobile industry has been increasingly competitive over the past few years with an increasing trend of electrical transport due to sustainability, with sales of EV exceeding 10 million. The main competitors of Rivian are other electric car companies including Tesla, the Lucid group, and Li Auto.  
===='''Tesla'''  ====
Tesla is known for being a pioneer in the EV market and was founded in 2003. It is the biggest EV company by market capitalisation with a market cap of 629.52 billion. It has wide range of electrical vehicles catering to various customer segments. The company has an automotive segment which includes the design, development, manufacturing, sales and leasing of electrical vehicles and automotive regulatory credit. The company has segments including Automotive, Energy Generation and Storage.
===='''Lucid group Inc'''  ====
Lucid Group Inc. is a technology and automotive company that focuses on designing, manufacturing, developing, and selling electric vehicles with a main focus on in-house technology innovation. They also develop energy storage systems for electric vehicles and supply automakers with battery systems for electric vehicles. They specialise in high-end electro-powered sports cars, with a market cap of 15.71 billion. They are best known for Lucid Air, with the second model Lucid Gravity SUV which is scheduled to launch in 2024.
===='''Li Auto'''  ====
Li Auto is a Chinese EV manufacturer, with a market cap of 23.21 billion. The company sells premium smart electric SUV vehicles as the main pioneer in China which has successfully commercialised extended range electrical vehicles in China. The company focuses on next-generation electric vehicle technology and smart vehicle solutions. The products have been categorised into SUV, MPV and sedan segments.
==Company Snapshot and Operational Insight==
Rivian is an automaker and automotive technology company that develops vehicles, products, and services related to sustainable transportation. They manufacture electric vehicles and are known for their two models, the R1T, an all-electric pickup truck, and the R1S, an all-electric SUV. Rivian also has a contract with Amazon to build electric delivery vans. They have a vertically integrated business model and technology platform, focus on customer experience, direct-to-customer relationships, and the ability to efficiently launch multiple vehicle platforms.
===='''Market:'''====
Rivian's market extends beyond just automotive manufacturing. They are involved across the spectrum of the consumer and commercial value chain, which includes third parties such as charging providers, vehicle service providers, vehicle remarketers, and traditional fleet management companies.
===='''Board of Directors:'''====
===='''ESG (Environmental, Social, and Governance):'''====
Rivian is committed to diversity, equity, inclusion, and belonging. They have operating principles that anchor their work for belonging, which includes representation, diverse teams, self-awareness, and equitable practices. They have developed a range of internal programs and offerings for their employees to foster a sense of belonging.

Rivian is also committed to responding effectively to climate change. They are one of the signatories to The Climate Pledge, committing to reaching net-zero carbon emissions by 2040. They aim to measure and report their GHG emissions, implement decarbonisation strategies, and power charging on the Rivian Adventure Network and Rivian Waypoints Network with 100% renewable energy.

Rivian's products are designed to reduce impact on the environment over their lifecycle. This includes incorporating sustainable materials, prioritizing energy efficiency, and recycling key materials. They also track and forecast the carbon footprint of design iterations throughout the product development process.

Rivian is subject to stringent and comprehensive federal, state, and local laws and regulations governing matters related to environmental protection, occupational health and safety, and the release or discharge of materials into the environment.

Rivian is facing increasing scrutiny related to their ESG practices and reporting. Investors, consumers, employees, and other stakeholders have focused increasingly on ESG practices and placed increasing importance on the implications and social cost of their investments, purchases, and other interactions with companies.
==Financials==

====Income Statement====
{| class="wikitable"
!Breakdown 
!TTM 
! 12/31/2022 
!12/31/2021
!12/31/2020 
!12/31/2019
|-
|Total Revenue
|1,658,000
|1,658,000
|55,000
| 0
|0
|-
|Operating Revenue
|1,658,000
|1,658,000
|55,000
|0
|0
|-
|Cost of Revenue
|4,781,000
|4,781,000
|520,000
| -
|0
|-
| Gross Profit 
| -3,123,000
| -3,123,000
| -465,000
| -
|0
|-
|Operating Expense
| 3,733,000
| 3,733,000
|3,755,000
|1,021,000
| 409,000
|-
|Selling General and Administrative
|1,789,000 
| 1,789,000
|1,242,000
|255,000
|108,000
|-
|Research & Development
|1,944,000
|1,944,000
|1,850,000
|766,000
|301,000
|-
|Other Operating Expenses
| -
| -
| 663,000
| -
| -
|-
| Operating Income
| -6,856,000
| -6,856,000
| -4,220,000
| -1,021,000
| -409,000
|-
|Net Non Operating Interest Income Expense
|90,000
|90,000 
| -26,000
| 2,000
| -16,000
|-
|Interest Income Non Operating
|193,000 
|193,000
|3,000
|10,000
|18,000
|-
|Interest Expense Non Operating
|103,000
|103,000
| 29,000
|8,000 
|34,000
|-
| Other Income Expense
|18,000
|18,000
| -442,000
|1,000
| -1,000
|-
|Gain on Sale of Security
| -
| -
| -441,000
| -
| -
|-
|Other Non Operating Income Expenses
|18,000
|18,000
| -1,000
|1,000
| -1,000
|-
|Pretax Income
| -6,748,000
| -6,748,000
| -4,688,000
| -1,018,000
| -426,000
|-
|Tax Provision
|4,000
|4,000
| 0
|0
|0
|-
|Net Income Common Stockholders
| -6,752,000
| -6,752,000
| -4,688,000
| -2,506,000
| -426,000
|-
|Net Income
| -6,752,000
| -6,752,000
| -4,688,000
| -1,018,000
| -426,000
|-
|Net Income Including Non-Controlling Interests
| -6,752,000
| -6,752,000
| -4,688,000
| -1,018,000
| -426,000
|-
|Net Income Continuous Operations
| -6,752,000
| -6,752,000
| -4,688,000
| -1,018,000
| -426,000
|-
|Otherunder Preferred Stock Dividend 
|0
|0
|0
|1,488,000
|0
|-
|Diluted NI Available to Com Stockholders
| -6,752,000
| -6,752,000
| -4,688,000
| -2,506,000
| -426,000
|-
|Basic EPS
| -
| -7.4
| -5.21
| -1.41
| -0.59
|-
| Diluted EPS
| -
| -7.4
| -5.21
| -1.41
| -0.59
|-
|Basic Average Shares
| -
|913,000
|900,000
|723,000 
| 723,000
|-
|Diluted Average Shares
| -
|913,000
|900,000
|723,000
|723,000
|-
|Total Operating Income as Reported
| -6,856,000
| -6,856,000
| -4,220,000
| -1,021,000
| -409,000
|-
|Total Expenses
|8,514,000
|8,514,000
|4,275,000
| 1,021,000
|409,000
|-
| Net Income from Continuing & Discontinued Operation
| -6,752,000
| -6,752,000
| -4,688,000
| -1,018,000
| -426,000
|-
| Normalized Income 
| -6,752,000
| -6,752,000
| -4,247,000
| -1,018,000
| -426,000
|-
|Interest Income
|193,000
|193,000
|3,000
|10,000
| 18,000
|-
| Interest Expense
|103,000 
|103,000
|29,000
|8,000 
|34,000 
|-
|Net Interest Income
|90,000
|90,000
| -26,000
| 2,000
| -16,000
|-
| EBIT
| -6,645,000
| -6,645,000
| -4,659,000
| -1,010,000
| -392,000
|-
|EBITDA
| -5,993,000
| -
| -
| -
| -
|-
|Reconciled Cost of Revenue
|4,781,000
|4,781,000
|520,000
| -
|0
|-
|Reconciled Depreciation
|652,000
|652,000
|197,000
|29,000
|7,000
|-
|Net Income from Continuing Operation Net Minority Interest
| -6,752,000
| -6,752,000
| -4,688,000
| -1,018,000
| -426,000
|-
|Total Unusual Items Excluding Goodwill
| -
| -
| -441,000
| -
| -
|-
|Total Unusual Items
| -
| -
| -441,000
| -
| -
|-
|Normalized EBITDA 
| -5,993,000
| -5,993,000
| -4,021,000
| -981,000
| -385,000
|-
|Tax Rate for Calcs
|0
|0
|0
|0
|0
|-
|Tax Effect of Unusual Items
|0
|0
|0
| 0
| 0
|}
====Balance Sheet ====
{| class="wikitable"
!Breakdown
!12/31/2022
!12/31/2021
!12/31/2020
!12/31/2019 
|-
|Total Assets 
| 17,876,000
|22,294,000
|4,602,000 
|2,633,000
|-
| Current Assets
|13,130,000
|18,559,000
|3,016,000
|2,293,000
|-
|Cash, Cash Equivalents & Short Term Investments
| 11,568,000
|18,133,000 
|2,979,000
|2,264,000
|-
|Cash And Cash Equivalents 
| 11,568,000
|18,133,000 
|2,979,000
| 2,264,000
|-
| Cash
|2,604,000 
| -
| -
| -
|-
|Cash Equivalents
|8,964,000
| -
| -
| -
|-
|Receivables 
|102,000
|26,000
| -
| -
|-
|Accounts receivable
|102,000
|26,000
| -
| -
|-
|Inventory
|1,348,000
|274,000
| -
| -
|-
|Raw Materials 
|949,000
| -
| -
| -
|-
|Finished Goods
|399,000 
| -
| -
| -
|-
| Other Current Assets
|112,000
|126,000
|37,000
|29,000
|-
|Total non-current assets
|4,746,000
|3,735,000
|1,586,000
|340,000
|-
|Net PPE
|4,088,000
|3,411,000
|1,525,000
|313,000
|-
|Gross PPE
|4,971,000
| 3,644,000
|1,563,000 
| 323,000
|-
|Properties
|0
|0
| 0
|0
|-
|Land And Improvements
|636,000
|429,000
|88,000
|9,000
|-
|Machinery Furniture Equipment
|2,865,000 
|2,036,000
|139,000
|36,000
|-
|Other Properties
|330,000
|228,000
|80,000
| -
|-
|Construction in Progress
|843,000
|760,000
|1,205,000
|271,000
|-
|Leases
|297,000
|191,000
|51,000
|7,000 
|-
|Accumulated Depreciation
| -883,000
| -233,000
| -38,000
| -10,000
|-
|Other Non Current Assets
|658,000
|324,000
|61,000
|27,000
|-
|Total Liabilities Net Minority Interest
|4,077,000
| 2,780,000 
|5,986,000
|3,008,000
|-
|Current Liabilities
|2,424,000
|1,313,000
|611,000
|185,000 
|-
|Payables And Accrued Expenses
|2,154,000
|1,150,000 
| 533,000
|164,000
|-
|Payables
|1,000,000
|483,000
|90,000
|27,000 
|-
|Accounts Payable 
| 1,000,000
| 483,000 
|90,000
|27,000 
|-
|Current Accrued Expenses
|1,154,000
|667,000
|443,000
|137,000
|-
| Current Debt And Capital Lease Obligation
|270,000
|89,000
|50,000 
|3,000
|-
|Current Debt
| -
| -
| 28,000
| -
|-
|Other Current Borrowings
| -
| -
|28,000 
| -
|-
|Current Capital Lease Obligation
| 270,000
|89,000
|22,000 
|3,000
|-
|Current Deferred Liabilities 
| -
|74,000
|28,000
|18,000
|-
| Current Deferred Revenue
| -
|74,000
|28,000 
|18,000
|-
|Other Current Liabilities 
| -
| -
|22,000
|3,000
|-
|Total Non Current Liabilities Net Minority Interest
| 1,653,000
|1,467,000
|5,375,000
|2,823,000
|-
|Long Term Debt And Capital Lease Obligation
| 1,542,000
| 1,444,000 
|130,000
|71,000
|-
|Long Term Debt
|1,231,000
|1,226,000
|47,000
|71,000
|-
|Long Term Capital Lease Obligation
|311,000 
|218,000
|83,000
|0
|-
|Preferred Securities Outside Stock Equity 
| -
|0
|5,244,000
|2,750,000
|-
|Other Non Current Liabilities
|111,000
|23,000
|1,000
| 2,000
|-
|Total Equity Gross Minority Interest
|13,799,000
|19,514,000
| -1,384,000
| -375,000
|-
|Stockholders' Equity
|13,799,000 
|19,514,000
| -1,384,000
| -375,000
|-
|Capital Stock
|1,000
|1,000
|0
|0
|-
| Preferred Stock
|0
| -
| -
| -
|-
|Common Stock
|1,000
|1,000
|0
| 0
|-
|Additional Paid in Capital
|26,926,000
|25,887,000
|302,000
|293,000
|-
|Retained Earnings
| -13,126,000
| -6,374,000
| -1,686,000
| -668,000
|-
|Gains Losses Not Affecting Retained Earnings
| -2,000
| -
|0
|0
|-
| Other Equity Adjustments
| -2,000
| -
| -
| -
|-
|Total Capitalization 
|15,030,000
|20,740,000
| -1,337,000
| -304,000
|-
|Common Stock Equity
|13,799,000
|19,514,000
| -1,384,000
| -375,000
|-
|Capital Lease Obligations
|581,000
|307,000 
|105,000
|3,000
|-
|Net Tangible Assets
|13,799,000
|19,514,000
| -1,384,000
| -375,000
|-
| Working Capital
|10,706,000 
|17,246,000
|2,405,000
|2,108,000
|-
|Invested Capital 
|15,030,000
|20,740,000 
| -1,309,000
| -304,000
|-
|Tangible Book Value
|13,799,000
|19,514,000 
| -1,384,000
| -375,000
|-
|Total Debt
|1,812,000
|1,533,000 
| 180,000
|74,000
|-
|Share Issued
|926,000 
|900,000
|852,859 
|852,859
|-
|Ordinary Shares Number
|926,000
|900,000 
|852,859
|852,859 
|}
====Cash Flow Statement====
{| class="wikitable"
!Breakdown
!12/31/2022
!12/31/2021
!12/31/2020
!12/31/2019
|-
|Operating Cash Flow
| -5,052,000
| -2,622,000
| -848,000
| -353,000
|-
|Cash Flow from Continuing Operating Activities
| -5,052,000
| -2,622,000
| -848,000
| -353,000
|-
|Net Income from Continuing Operations
| -6,752,000
| -4,688,000
| -1,018,000
| -426,000
|-
|Operating Gains Losses
| -
|441,000
| -
| -
|-
|Depreciation Amortization Depletion
|652,000
|197,000 
|29,000
|7,000
|-
|Depreciation & amortization 
|652,000 
| 197,000
|29,000 
|7,000
|-
|Asset Impairment Charge
|920,000
|95,000
| -
|0
|-
|Stock based compensation
|987,000
|570,000 
| -
|0
|-
|Other non-cash items
|82,000
| 1,120,000
|41,000
|37,000
|-
|Change in working capital 
| -941,000
|84,000 
| 100,000
|29,000
|-
|Change in Receivables
| -76,000
| -20,000
| -
| -16,000
|-
|Changes in Account Receivables
| -76,000
| -20,000
| -
| -16,000
|-
|Change in Inventory
| -1,657,000
| -369,000
| -
|0
|-
|Change in Payables And Accrued Expense
| 623,000
|461,000
|121,000 
|43,000
|-
|Change in Other Current Assets
| -36,000
| -89,000
| -31,000
| -13,000
|-
|Change in Other Current Liabilities
|205,000
|55,000
|0
|1,000
|-
|Change in Other Working Capital
| -
|46,000 
|10,000 
|14,000
|-
|Investing Cash Flow
| -1,369,000
| -1,794,000
| -914,000
| -199,000
|-
|Cash Flow from Continuing Investing Activities
| -1,369,000
| -1,794,000
| -914,000
| -199,000
|-
|Capital Expenditure Reported
| -1,369,000
| -1,794,000
| -914,000
| -199,000
|-
|Net Other Investing Changes
| -
| -
| -
| -2,000
|-
| Financing Cash Flow 
|99,000
| 19,828,000
|2,500,000
|2,811,000
|-
|Cash Flow from Continuing Financing Activities
|99,000 
| 19,828,000
|2,500,000
| 2,811,000
|-
|Net Issuance Payments of Debt
|0
|3,640,000
|0
| 61,000
|-
| Net Long Term Debt Issuance
|0
|3,640,000
| 0
|61,000
|-
|Long Term Debt Issuance
|0
|3,726,000
|0
|61,000
|-
|Long Term Debt Payments
| -
| -86,000
| -
|0
|-
|Net Common Stock Issuance
|102,000
|16,188,000
| 2,500,000
|2,750,000
|-
|Common Stock Issuance 
|102,000
| 16,188,000
|2,506,000
|2,750,000 
|-
|Common Stock Payments
| -
| -
| -6,000
|0
|-
|Net Other Financing Charges
| -3,000
| -
| -
| -
|-
|End Cash Position
|12,099,000
|18,423,000
|3,011,000
|2,273,000
|-
|Changes in Cash
| -6,322,000
|15,412,000
|738,000
|2,259,000
|-
|Effect of Exchange Rate Changes
| -2,000
| -
| -
| -
|-
|Beginning Cash Position
|18,423,000
|3,011,000
|2,273,000
|14,000
|-
|Interest Paid Supplemental Data
|88,000
|2,000
|4,000
|5,000
|-
|Capital Expenditure
| -1,369,000
| -1,794,000
| -914,000
| -199,000
|-
|Issuance of Capital Stock 
| 102,000
| 16,188,000
|2,506,000 
|2,750,000
|-
|Issuance of Debt
| 0
|3,726,000
|0
|61,000
|-
| Repayment of Debt
| -
| -86,000
| -
| 0
|-
|Repurchase of Capital Stock
| -
| -
| -6,000
|0
|-
|Free Cash Flow
| -6,421,000
| -4,416,000
| -1,762,000
| -552,000
|}
==Valuation==

==== Assumptions ====
This research report aims to evaluate the valuation of Rivian based on available financial data for the years 2021 and 2022. Given the absence of historical data, which complicates the forecasting of financial statements using traditional growth and percentage analysis, the research team has opted to utilize Comparable analysis for making assumptions. In constructing the Discounted Cash Flow (DCF) model, Tesla has been chosen as the comparable company.

The following assumptions have been employed in the DCF model:

These assumptions are based on careful analysis and consideration of relevant factors to ensure a comprehensive and accurate evaluation of Rivian's valuation. It is essential to highlight that these assumptions are subject to change based on future developments and additional data availability. The research team remains committed to refining the analysis as new information becomes accessible, thus ensuring the most up-to-date and reliable valuation for Rivian.
{| class="wikitable"
|+
!Assumptions
!Value
|-
|Long-term growth rate
|4.0%
|-
|Revenue Growth
|41.2%
|-
|EBITDA 
|15.6%
|-
|Depreciation 
|6.6%
|-
|Total Cash
|36.8%
|-
|Account Receivables
|4.6%
|-
|Inventories
|13.5%
|-
|Accounts Payable
|18.0%
|-
|Capital Expenditure
|10.0%
|-
|Tax Rate
|7.0%
|}

==== DCF Analysis ====
{| class="wikitable"
! colspan="9" |Operating Data - (USD 'MM)
|-
| colspan="9" |
|-
!'''Year'''
!'''2020'''
!'''2021'''
!'''2022'''
!'''2023'''
!'''2024'''
!'''2025'''
!'''2026'''
!'''2027'''
|-
!'''A/F'''
!'''Actual'''
!'''Actual'''
!'''Actual'''
!'''Forecast'''
!'''Forecast'''
!'''Forecast'''
!'''Forecast'''
!'''Forecast'''
|-
|
|
|
|
|
|
|
|
|
|-
!Revenue
| -  
|55
|1,658
| ''2,341''
| ''3,306''
| ''4,668''
| ''6,591''
| ''9,306''
|-
!Revenue Growth  %
|0.0%
|0.0%
|2914.5%
|       ''41.2%''
|     ''41.2%''
|       ''41.2%''
|       ''41.2%''
|       ''41.2%''
|-
!EBITDA
|(1,021)
|(4,220)
|(6,856)
| ''365''
| ''516''
| ''728''
| ''1,028''
| ''1,452''
|-
!EBITDA, %
|0.0%
| -7672.7%
| -413.5%
|       ''15.6%''
|      ''15.6%''
|       ''15.6%''
|       ''15.6%''
|      ''15.6%''
|-
!Depreciation
|29
|197
|652
| ''155''
| ''218''
| ''308''
| ''435''
| ''614''
|-
!Depreciation, %
|0.0%
|358.2%
|39.3%
|         ''6.6%''
|        ''6.6%''
|        ''6.6%''
|         ''6.6%''
|        ''6.6%''
|-
!EBIT
|(1,050)
|(4,417)
|(7,508)
| ''211''
| ''298''
| ''420''
| ''593''
| ''838''
|-
!EBIT, %
|0.0%
| -8030.9%
| -452.8%
|         ''9.0%''
|        ''9.0%''
|         ''9.0%''
|           ''9.0%''
|         ''9.0%''
|-
| colspan="9" |
|-
! colspan="9" |Balance Sheet Data - (USD 'MM)
|-
| colspan="9" |
|-
!Year
!2020
!2021
!2022
!2023
!2024
!2025
!2026
!2027
|-
!A/F
!Actual
!Actual
!Actual
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
|-
|
|
|
|
|
|
|
|
|
|-
!Total Cash
| -  
|18,133
|11,568
| ''862''
| ''1,216''
| ''1,718''
| ''2,425''
| ''3,425''
|-
!Total Cash, %
|0.0%
|32969.1%
|697.7%
|       ''36.8%''
|       ''36.8%''
|      ''36.8%''
|      ''36.8%''
|      ''36.8%''
|-
!Account Receivables
| -  
|26
|102
| ''108''
| ''152''
| ''215''
| ''303''
| ''428''
|-
!Account Receivables, %
|0.0%
|47.3%
|6.2%
|         ''4.6%''
|         ''4.6%''
|     ''4.6%''
|     ''4.6%''
|        ''4.6%''
|-
!Inventories
| -  
|274
|1,348
| ''316''
| ''446''
| ''630''
| ''890''
| ''1,256''
|-
!Inventories, %
|0.0%
|498.2%
|81.3%
|       ''13.5%''
|       ''13.5%''
|    ''13.5%''
|    ''13.5%''
|      ''13.5%''
|-
!Accounts Payable
| -  
|483
|1,000
| ''421''
| ''595''
| ''840''
| ''1,186''
| ''1,675''
|-
!Accounts Payable, %
|0.0%
|878.2%
|60.3%
|        ''18.0%''
|       ''18.0%''
|    ''18.0%''
|    ''18.0%''
|       ''18.0%''
|-
!Capital Expenditure
| -  
|(1,794)
|(1,369)
| ''(234)''
| ''(331)''
| ''(467)''
| ''(659)''
| ''(931)''
|-
!Capital Expenditure, %
|0.0%
|3261.8%
|82.6%
|      ''10.0%''
|       ''10.0%''
|    ''10.0%''
|    ''10.0%''
|       ''10.0%''
|-
| colspan="9" |
|-
! colspan="9" |Build Up Free Cash Flow - (USD 'MM)
|-
| colspan="9" |
|-
!Year
!2020
!2021
!2022
!2023
!2024
!2025
!2026
!2027
|-
!A/F
!Actual
!Actual
!Actual
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
|-
|
|
|
|
|
|
|
|
|
|-
|Revenue
| -  
|55
|1,658
| ''2,341''
| ''3,306''
| ''4,668''
| ''6,591''
| ''9,306''
|-
|EBITDA
|(1,021)
|(4,220)
|(6,856)
| ''365''
| ''516''
| ''728''
| ''1,028''
| ''1,452''
|-
|EBIT
|(1,050)
|(4,417)
|(7,508)
|         ''211''
| ''298''
| ''420''
| ''593''
| ''838''
|-
|Tax Rate, %
|0.0%
| -9.4%
| -0.1%
|        ''7.0%''
|         ''7.0%''
|         ''7.0%''
|        ''7.0%''
|         ''7.0%''
|-
|EBIAT
|(1,047)
|(4,833)
|(7,512)
| ''196''
| ''277''
| ''391''
| ''552''
| ''779''
|-
|Depreciation
|29
|197
|652
| ''155''
| ''218''
| ''308''
| ''435''
| ''614''
|-
|Accounts Receivable
| -  
|(26)
|(76)
| ''(6)''
| ''(44)''
| ''(63)''
| ''(88)''
| ''(125)''
|-
|Inventories
| -  
|(274)
|(1,074)
| ''1,032''
| ''(130)''
| ''(184)''
| ''(260)''
| ''(367)''
|-
|Accounts Payable
| -  
|483
|517
| ''(579)''
| ''174''
| ''245''
| ''346''
| ''489''
|-
|Capital Expenditure
| -  
|(1,794)
|(1,369)
| ''(234)''
| ''(331)''
| ''(467)''
| ''(659)''
| ''(931)''
|-
|UFCF
|(1,018)
|(6,247)
|(8,862)
| ''564''
| ''163''
| ''231''
| '' 326''
| ''460''
|-
|WACC, %
|0.0%
|0.0%
|0.0%
|      ''14.9%''
|       ''14.9%''
|       ''14.9%''
|       ''14.9%''
|       ''14.9%''
|-
|PV UFCF
|0
|0
|0
|491
|124
|152
|187
|230
|}
{| class="wikitable"
! colspan="5" |Valuation - (USD 'MM)
|-
|Terminal Value (Perpetuity Growth method) - (USD 'MM)
|
| rowspan="6" |
|Intrinsic Value
|0
|-
|Long-term growth rate, %
|4.0%
|Enterprise Value - (USD 'MM)
|3,385
|-
|WACC, %
|14.9%
|Net Debt - (USD 'MM)
| -9,756
|-
|Free cash flow (t + 1)
|478
|Equity Value - (USD 'MM)
|13,141
|-
|Terminal Value
|4,401
|Shares Outstanding, MM
|913
|-
|Present Value of Terminal Value
|2,201
|Equity Value Per Share, USD
|14.39
|}

==Technical Analysis==
In this section, the attractiveness of Rivian stock is considered based on various technical indicators over a given time period. As the indicators are quite short term and all data is up to 22nd July, this should be kept in mind when considering Rivian as an investment opportunity.  

The first indicator is RSI which is an analysis of momentum. RSI indicators looks back at the average daily gain or loss of a security to represent how overbought or oversold a security is.

The next indicator is the Stochastic Oscillator, another momentum indicator comparing the closing price of the security to the lowest traded and highest traded price over 14 previous trading days. The indicator is also used to consider whether the security is over or under-valued.

StochRSI or Stochastic RSI, evaluates the RSI indicators with the Stochastric Oscillator formula allowing further sensitivity for the RSI momentum indicator. The indicator is less volatile than RSI in evaluating whether a security is overbought or oversold.   

ADX – Average Directional Index measures the strength of a price movement. The indicator is based on the moving average of the rate of price changes in a given time period. It describes how strong a trend is in the price movement of the security and can be used to support any hypotheses.

Commodity Channel Index – the indicator measures the spread between the current price and the historic average price based on the number of given periods. This indicator is similar to Stochastic Oscillator, but the CCI is unbounded, and both show whether a security is overbought or oversold.

High Low Index – A simple moving average dividing new highs over the sum of new highs and new lows. The indicator measures the prevailing market trends and analyses broad indices such as the FTSE 100.

Ultimate Oscillator – Uses three different timeframes, weekly, biweekly, and monthly period. The weightage of the calculations increases with the more recent timeframes. The indicator fluctuates less compared to other momentum indicators due to incorporating various periods. A buy signal is generated when a bullish divergence is formed where the price of the security diverges from the value of the indicator. The oscillator should then rise above the divergence high and vice versa for the selling case.  

Price Rate of Change – ROC measures the percentage change between the current price and the price of the security from a previous lookback period. If the price is on the upside, the indicator is positive, and vice versa.   
{| class="wikitable"
| colspan="3" |'''Rivian Technical Indicators'''
|-
|'''Name(period)'''
|'''Value'''
|'''Buy/Sell Signal'''
|-
|RSI(14)
|51.444
|Neutral
|-
|STOCH(9,6)
|35.189
|Sell
|-
|STOCHRSI(14)
|43.633
|Sell
|-
|ADX(14)
|23.092
|Sell
|-
|CCI(14)
|16.8438
|Neutral
|-
|Highs/Lows(14)
|0
|Neutral
|-
|Ultimate Oscillator
|45.969
|Sell
|-
|ROC
|1.772
|Buy
|}Overall, the indicators above show 4 Sell indicators, 1 Buy indicators and 3 Neutral indicators. From the technical indicators, the consensus is to sell due to bearish trend in price movement as indicated by the Ultimate Oscillator and the momentum indicators such as STOCHRSI hinting to Rivian stock being overbought. However, the ADX indicators does show that this is a weak trend and must be kept in mind along with further analysis to decide whether to buy or sell Rivian.
==Catalysts==
Rivian has recently tripled EV production and deliveries in Q2 in 2023. Production was up 218% higher than a year ago, which made it to be the best quarter in the company’s history. Rivian had reported 12,640 units which is 183% higher than 2022.

Rivian had recently decided to switch to Tesla’s North American Charging standard charging connector (NACS) starting 2025, to leverage the charging infrastructure that Tesla has built. This is a stride towards standardizing EV charging infrastructure and potentially capitalizing operational efficiency and customer convenience, as Tesla Super chargers account for 60% of the fast chargers available in the United States according to the U.S. Department of Energy.  

Rivian electric delivery vans are beginning to expand into Europe through Amazon, as electric vans will be used to deliver packages among major cities including Munich following Amazon’s announcement to electrify the European transportation network, reduce carbon emissions and reaching net-zero by 2040. Amazon aims to have 100,000 electric delivery vehicles from Rivian globally by 2030.
==Risk==
As with any investment, investing in Rivian carries a level of risk. In order to make an informed investment decision, it is important to consider the key risks associated with the company.  
===='''Risks Related to the Ability to Grow the Business'''====
*Rivian is up against established vehicle manufacturers and new competitors in the automobile sector, particularly in the electric vehicle segment. Increased competition may result in decreased market share and pricing pressures, reducing Rivian's profitability.

*Rivian's success relies on sustained and growing consumer demand for electric vehicles. Factors such as government regulations, consumer preferences, and the availability of charging infrastructure can impact demand and affect Rivian's sales and market penetration.

*Rivian is in the early stages of vehicle production and delivery, which may cause delays, production inefficiencies, or quality control issues.

*Rivian may be affected by the macroeconomic conditions resulting form the global COVID-19 pandemic.  

*Rivian sources components for its cars through a complex global supply chain. Supply chain disruptions, such as component shortages, quality concerns, or cost rises, may have an impact on Rivian's production capability and overall operations.
===='''Risks Related to the Company's Operations'''====
*Technical flaws, safety concerns, manufacturing defects, or failures to satisfy quality standards can result in expensive recalls, damage to reputation, and legal ramifications.
*Negative publicity, quality issues, or product recalls could harm consumer trust, impact sales, and affect Rivian's long-term prospects.
*Rivian is exposed to fluctuations in currency exchange rates.  
*Rivian’s operations may be affected by events out of its control, such as war and natural disasters.  
*Legal disputes and product liability claims could result in restrictions on Rivian’s operations.  
===='''Risks Related to Government Laws and Regulations'''====
*Changes in government policies, such as subsidies or laws governing electric vehicles, may have an impact on Rivian's sales and market competitiveness.
*Rivian is subject to evolving laws and regulations that may impose substantial costs, legal prohibitions, or unfavourable changes on its operations or products.
===='''Risks Related to the Ownership of the Company's Securities'''====
*The trading price of Rivian's securities, once publicly traded, may be subject to significant volatility, as shown historically.  
*Market conditions, investor happiness, and company-specific news can all have an impact on the stock price.
*The sale of shares by insiders, including executives and early investors, can influence the stock price.
==References==

__INDEX__