Rivian (NASDAQ:RIVN) remains a speculative investment, given its high cash burn rate, which could lead the firm to run out of cash, and the increasingly competitive nature of the electric vehicle (EV) segment. I’m glad to see it taking a leaf out of Tesla’s (NASDAQ:TSLA) books and focusing on achieving operational efficiencies, but there are too many risks for me to get behind it. Thus, I’m neutral on Rivian stock.
Rivian’s Q1 Was a Mixed Bag
Rivian reported earnings per share of -$1.24 during the first quarter, missing the consensus estimate by $0.09, on the back of a net loss of $1.45 billion. Gross profit was only marginally better than in 2023 at negative $527 million versus negative $535 million a year ago.
Nonetheless, there were some positive developments for investors to digest. Revenue came in at $1.20 billion, up 82.15% year-over-year, exceeding expectations by $34.96 million. This was achieved with the…
