RIVN | Long Term | 100% Return

Dec 1, 2024

CMP: 12.23
Entry price: 13.5
Target: 27.5
Return: 100%

The consolidation near a key support level is a strong signal of accumulation by buyers.
Watchout volume and retest in the breakout area.

Dec 1, 2024

Trade active

Rivian anticipates the R2 platform will achieve profitability more quickly than the R1. This projection is based on several key factors:

Leveraging Existing Operations: The R2 will be produced in Rivian's existing facility in Normal, Illinois, allowing the company to leverage its current manufacturing and logistics infrastructure, leadership team, and overhead costs. This reduces the need for significant new investments and streamlines the production ramp-up.

Advanced Sourcing Progress: Rivian has already sourced 85% of the R2's bill of materials, staying within its aggressive cost targets. This proactive approach ensures a smoother production process and reduces the risk of unexpected cost increases.

Design and Engineering Efficiencies: The R2 platform benefits from the lessons learned during the development and production of the R1, particularly in areas like design simplification and component consolidation. The R2 also incorporates a structural battery pack that forms the vehicle's floor, further reducing complexity and cost.

These factors, combined with the anticipated high demand for a compelling electric vehicle in the sub-$50,000 price range, contribute to Rivian's confidence in R2's profitability potential