IRVINE, Calif. - Rivian (NASDAQ:RIVN) Automotive Inc. (NASDAQ: RIVN) today announced the launch of the second-generation R1S SUV and R1T pickup truck, boasting a suite of hardware improvements, performance enhancements, and a fully redesigned software experience. The updated models, which maintain the company's iconic exterior design, introduce a zonal electrical architecture and a new in-house developed drive system.
The revamped R1S and R1T feature a Rivian-designed Quad Motor that delivers 1,025 horsepower, allowing the R1T to accelerate from 0 to 60 mph in under 2.5 seconds. Alongside the Quad-Motor, a Dual-Motor configuration is also available. The new vehicles come with a choice of Large and Max battery packs offering up to an estimated 420 miles of range, as well as a Standard pack based on lithium iron phosphate technology with up to 270 miles of range.
Rivian's CEO and founder, RJ Scaringe, emphasized the technical advancements of the new lineup, stating that the updated R1 vehicles are the company's most capable products to date.
The second-generation R1 vehicles feature a new electrical and compute platform that reduces the number of electronic control units from 17 to 7, significantly cutting down on wiring. The Rivian Autonomy Platform, a new autonomy system equipped with 11 cameras, five radars, and AI prediction technology, is standard on all vehicles. A premium version, Rivian Autonomy Platform+, offers additional features and is set to expand its capabilities with future updates.
New design elements include adaptive headlights with Drive Beam technology, customizable interior lighting, and a Dynamic Glass Roof. The vehicles also support keyless entry and start via Apple (NASDAQ:AAPL) Wallet on iPhone and Apple Watch, as well as select Google (NASDAQ:GOOGL) Pixel devices.
In terms of entertainment, Rivian introduces Connect+, a subscription service that includes streaming video through Google Cast and access to a vast music library through Apple Music, enhanced with Dolby Atmos audio available with Rivian Premium Audio.
The company has also focused on efficiency and sustainability, achieving a 15% lower standard lifetime carbon footprint compared to the first-generation R1 platform. The new R1S starts at $75,900, and the R1T at $69,900, with immediate deliveries available from the company's production facility in Normal, Illinois.
This announcement is based on a press release statement from Rivian.
In other recent news, Rivian Automotive Inc has been the focus of several investment firms and analysts. Morgan Stanley (NYSE:MS) maintained an Overweight rating on Rivian, emphasizing its significant growth potential and highlighting its unique position in the automotive industry. Barclays (LON:BARC) also maintained its Equalweight rating on Rivian, with a focus on the company's integrated approach to hardware and software, as well as its financial strategies moving forward.
Meanwhile, Cantor Fitzgerald reduced its price target for Rivian due to concerns about a slower ramp-up in vehicle production and a slowdown in the demand for electric vehicles. Despite these concerns, the firm maintained its Overweight rating on the company.
In the company's recent earnings call, Rivian reported significant progress, including surpassing its delivery outlook and producing its 100,000th vehicle. The company also detailed its plans for cost reduction strategies and efficiency improvements to extend its cash balance and fund operations until the launch of its new R2 model.
These are recent developments in the company's trajectory, with analysts from Morgan Stanley, Barclays, and Cantor Fitzgerald providing their perspectives on the company's performance and potential.
InvestingPro Insights
As Rivian Automotive Inc. (NASDAQ: RIVN) gears up for the launch of its second-generation vehicles, the financial landscape paints a mixed picture. An InvestingPro Tip highlights that Rivian holds more cash than debt on its balance sheet, suggesting a degree of financial stability as it rolls out its new R1S SUV and R1T pickup truck. However, it's important for potential investors to note that the company is quickly burning through cash, which could impact its long-term growth and investment potential.
Looking at the real-time data from InvestingPro, Rivian's market capitalization stands at $11.4 billion USD, reflecting the market's current valuation of the company. Despite impressive revenue growth, with the last twelve months as of Q1 2024 showing a 123.79% increase, the company's gross profit margin is deeply in the negative territory at -40.63%, underscoring the challenges Rivian faces in achieving profitability. Additionally, the company's stock price has experienced significant volatility over the past six months, with a -37.7% price total return, which may concern risk-averse investors.
For those considering an investment in Rivian, or for current shareholders looking to deepen their understanding of the company's financial health, InvestingPro offers additional insights. There are 11 more InvestingPro Tips available, providing a comprehensive analysis of Rivian's financial metrics and market performance. Interested readers can explore these tips and benefit from the expertise of financial analysts by visiting https://www.investing.com/pro/RIVN. Moreover, by using the exclusive coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, making it a valuable resource for informed investment decisions.
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