learning about the management of Rivian Automotive Inc (NASDAQ: RIVN)’s interest in
partnering with Tesla, on Tuesday, shares jumped 3.9%. However,
the rally ran out of steam and shares of Rivian shifted into reverse and fell 6.88%
by close of yesterday’s trading.
less optimism about the stock's potential, Vijay Rakesh, an analyst at Mizuho,
reduced the price target on Rivian to $27 from $30.
the price target, in part, due to the updated expectation that Rivian will
deliver 68,000 R1 vehicles in 2024 instead of the original forecast of 78,000
In May, Rakesh
also reduced the price target from $45 to $30.
Why the RIVN Weekly
Options Trade was Originally Executed?
Automotive Inc (NASDAQ: RIVN), the EV start-up, which has been going through some tough
times, recently received more bad news; booted from a stock index just before
The electric vehicle upstart made its spectacular
Nasdaq debut on Nov. 10, 2021, opening at $106.75 per share after being priced
shares closed that day at $100.73, marking a nearly 30% jump from its offering
price and making the company the second most valuable U.S. automaker after
were tough roads ahead for Rivian, which was backed at the time by
Amazon and Ford.
The company had
difficulty ramping up production burned a lot of cash in the process.
As a result,
Rivian could not afford to lower its prices to compete with Tesla, because its
production costs remain huge and its profit margins are already very narrow.
which manufactures the R1S SUV, the R1T pickup truck and the EDV van at its
Normal, Ill., plant, had to halve its initial production target last year to
In the end,
Rivian did not quite manage to meet this objective, ultimately producing 24,337
its stake last year and Rivian's market cap, which reached $150 billion in
mid-November 2021, was $14.23 billion on June 14.
stock was closed at $14.74 a share yesterday.
company suffered another blow. Rivian will removed from the Nasdaq-100 index
prior to the market open on June 20 and replaced by Onsemi, which designs
manufactures, and supplies semiconductor products and solutions.
The RIVN Weekly Options Trade Explained.....
** OPTION TRADE: Buy RIVN JUL
07 2023 15.000 PUTS - price at last close was $1.19 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the RIVN Weekly Options (CALL) Trade on Thursday, June 15, 2023, for $0.98.
Sold half the RIVN weekly options contracts on Wednesday, June 21, 2023 for $1.28; a
potential profit of 31%.
Holding the remaining RIVN weekly options contracts
for further profit before expiry.
Don’t miss out on further trades – become a member today!
Automotive, Inc. is an OEM EV manufacturer focused on pickup trucks and SUVs.
The company was founded in 2009 and is based in San Jose, California. Rivian is
among the greenest of the EV makers choosing to achieve carbon neutrality well
ahead of the Paris Climate Accord timeline. Rivian Automotive went public in
designs, develops, manufactures, and sells electric adventure vehicles and
accessories through direct sales to consumers and commercial markets. The
company vehicles are designed for sustainability and long lifespans across all
components with repairability and reusability key to the end result. That
includes engineering specifications such as easily removable batteries and
batteries that can be easily recycled or repurposed into stationary power packs
when their EV lifespan is spent.
offers five-passenger pickup trucks and sports utility vehicles under the R1T
and R1S labels. The R1T is a highly configurable pickup while the R1S is an
off-road capable SUV. The R1T is hailed as the world’s first EV adventure vehicle,
it began production in early 2021 and the first deliveries were made later that
same year. By mid-2022 the company had delivered more than 8,000 vehicles with
production ramping quickly.
comes with 8 different drive modes geared for offroading, city adventures, and
everything in between. Among the choices is the “Drift” mode which proactively
distributes power to offset traction control and increase the “fun” factor. The
vehicle comes with a 240 to 400-mile range depending on the battery and motor
combination and individual driving styles. In regard to its capabilities, the
truck can go from 0 to 60 in 3 seconds, tow up to 11,000 pounds, and wade
through 3 feet of water with no problems.
Further Catalysts for the RIVN Weekly Options Trade…..
Nasdaq-100 consists of the largest and best-performing nonfinancial companies
based on market capitalization. It's heavily allocated toward technology,
consumer goods and healthcare industries.
Nasdaq announced after market hours on
Friday that it was replacing Rivian in the Nasdaq-100 index, effective
prior to market open on Tuesday. Its slot will be taken by specialty
semiconductor company ON Semiconductor.
As its name
suggests, the Nasdaq-100 is made up of 100 Nasdaq-listed companies, all of them
non-financial. While not as much of a bellwether listing as the S&P 500 or
other top-level stock indexes, it does carry a degree of prominence and
S&P Dow Jones Indices, the company that manages its near-namesake indexes,
Nasdaq does not typically provide the reasoning behind its modifications. It
kept to this habit with the Rivian/ON Semiconductor announcement.
According to the issued ratings of 17 analysts in the last
year, the consensus rating for Rivian Automotive stock is Moderate Buy based on
the current 2 sell ratings, 4 hold ratings and 11 buy ratings for RIVN. The
average twelve-month price prediction for Rivian Automotive is $27.74 with a
high price target of $61.00 and a low price target of $11.00.
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