Where Will Rivian Be in 5 Years?
Rivian (NASDAQ: RIVN) is one of the most talked about EV start-ups to hit the market in the past decade, but it hasn't done a lot to add value for investors. Shares have fallen 86% from their all-time high and the company is burning cash. The company is still a start-up and has a lot to prove building trucks, SUVs, and delivery vehicles that are only now starting to show up on streets in large numbers.
But in five years, this could be one of the more profitable companies in the auto industry. Here's a look at what to expect and the metrics to watch for at Rivian.
The hard truth is that it may be a while before Rivian is a profitable company. Rivian is in the investment phase of its lifecycle, and it may stay there for a while. In the third quarter of 2022, the company reported revenue of $536.0 million, only a year after delivering its first vehicle, which is impressive. However, Rivian has been spending a lot of capital to expand production, and negative free cash flow was $1.67 billion in the quarter.
Source Fool.com
