Rivian (RIVN) Postpones Big Battery Pack SUV Deliveries to '23
Rivian Automotive, Inc. RIVN has announced delayed deliveries of its electric pickup truck and sports utility vehicle with big battery packs to 2023.
The auto giant has around 71,000 preorders of R1T pickup trucks and R1S SUVs in the United States and Canada, but the majority of them are for the small battery pack version of the vehicles, which provides 314 miles of range on one charge. On the other hand, the bigger battery pack, known as the Max pack, is expected to offer 400 miles on a single charge. However, this version accounts for only 20% of the total preorders.
In order to cater to the larger chunk of preorder holders, the company has decided to push back the priority timeline of building the Adventure Package with large pack battery.
Explore Package preorders and vehicles with a Max pack battery configuration will follow suit in 2023. The company stated that the timings of its deliveries optimize its build sequence so that the best build combination offering the largest possible positive climate impact is prioritized.
To ensure that its customers remain updated about the vehicle delivery status at all times, the EV manufacturer has plans to introduce a feature on the accounts of Rivian customers that will display their current delivery timing estimate, by early 2022.
After having reported its first quarterly results as a listed firm earlier this month, the electric-vehicle maker has been hit by production challenges due to the ongoing supply-chain crisis, a global pandemic-induced tightened labor market and short-term issues around building electric battery modules. Despite the bottlenecks, it is to be noted that the company has already delivered 386 of the 652 vehicles that it built, including its pickup and SUV.
Shares of Rivian have plunged 14.1% over the month compared to its industry’s decline of 5%.
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Zacks Rank & Key Picks
Rivian currently carries a Zacks Rank #3 (Hold).
Better-ranked peers in the same space include Goodyear GT, flaunting a Zacks Rank #1 (Strong Buy), and Genuine Parts GPC and Dorman Products DORM, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Goodyear has an expected earnings growth rate of 197% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised 77% upward over the past 60 days.
Goodyear’s earnings beat the Zacks Consensus Estimate in all the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 228.5%, on average. Its shares have also gained around 88.1% over a year.
Genuine Parts has an expected earnings growth rate of 27.3% for the current year. The Zacks Consensus Estimate for the current year has been revised around 5% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the four trailing quarters. The company delivered a trailing four-quarter earnings surprise of roughly 16%, on average. Its shares have rallied around 36.6% over a year.
Dorman has an expected earnings growth rate of 36% for the current year. The Zacks Consensus Estimate for the current year has been revised 2% upward over the past 60 days.
Dorman’s earnings beat the Zacks Consensus Estimate in all of the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 10.41%, on average. Its shares have also rallied around 12.6% over a year.
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