Rivian launches used car program: rescue in a crisis?

Rivian launches used car program: rescue in a crisis?

Rivian is currently facing significant challenges. The electric car manufacturer, which is in direct competition with Tesla, is struggling with delivery bottlenecks and production problems. In recent weeks, the company has had to revise its original production targets downward, causing Rivian's stock price to plummet on the NASDAQ.

The American manufacturer reported 13,157 vehicles produced and 10,018 deliveries in the third quarter. However, these numbers have fallen short of expectations. Due to the current supply bottlenecks affecting a certain component, production had to be reduced. Rivian revised its annual production forecast to 47,000 to 49,000 vehicles, a significant decline from its original plan of 57,000 vehicles, adding to investor concerns.

Reactions to the production problems

The negative news led to a dramatic decline in the share price. At its peak, Rivian shares fell nearly nine percent before ultimately ending trading with a loss of 3.15 percent at $10.44. Analysts are concerned about the company's future development.

However, despite the current difficulties, Rivian has developed a new strategy to generate additional revenue. The company plans to introduce a used car sales program for its popular R1T and R1S models. This could be an answer to the current market situation and help gain the trust of new customers. According to industry experts, it is important for consumers to try out different options before making a purchase.

The used electric vehicle market is becoming increasingly important as the demand for used electric cars grows. Ivan Drury, senior analyst at Edmunds, commented on the opportunities such a program presents for Rivian. Most notably, used electric vehicles tend to depreciate less than new models, giving Rivian the opportunity to price above market.

Market developments and analyst opinions

Rivian shares have lost a remarkable 55.29 percent in value since the beginning of the year. However, analyst opinions surrounding the share price are mixed. At TipRanks, the average price target for Rivian is $17.24, representing over 64 percent upside potential from current levels. While some analysts recommend buying the stock, others lean towards a hold or sell strategy.

Rivian will present its third quarter results on November 7th. Investors are curious to see how the planned used car sales program will affect the company's financial situation. A look at current market conditions and strategic changes at Rivian shows that the company is committed to learning from its challenges and finding new ways to increase revenue.

Rivian's development therefore remains of interest to both investors and the entire electric vehicle industry. The coming months could be crucial for the company's future. For more information about Rivian's current market developments and strategies, see the reporting on www.finanzen.net.