RBC Capital Maintains Hold on Rivian Amid Liquidity Concerns Despite Q3 Beat
Rivian Automotive's stock rally following stronger-than-expected Q3 results faces headwinds as RBC Capital highlights persistent liquidity risks. Analyst Tom Narayan acknowledges strategic progress—including Volkswagen's $2.5B joint venture and a potential $6.6B DOE loan—but retains a $14 price target, citing unresolved funding contingencies tied to prototype testing and factory construction.
The EV maker's fortunes now hinge on executing its affordable R2 SUV launch against Tesla's dominance. While CEO incentives and operational improvements buoy sentiment, the path to sustainable cash FLOW remains fraught with milestones that could strain existing $7.1B reserves.