We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Rivian (RIVN) Redefines EV Tech With In-House Enduro Motor
Read MoreHide Full Article
It’s been two years since Rivian Automotive’s (RIVN - Free Report) EV debut and it has already faced myriad challenges. From production issues to navigating a crowded automotive landscape, the company has managed to emerge resilient. Now, it has taken a colossal step forward by unveiling its in-house electric motor design — Enduro.
In a bid to keep its costs down in a fiercely competitive industry, Rivian has adopted a strategy of vertical integration, producing components in-house with the unveiling of its new dual motor. This development is considered by CEO RJ Scaringe to be as pivotal as the company's initial venture into vehicle production.
CEO RJ Scaringe attributes Rivian’s cost reduction success to strategic optimization in material, overhead and logistics expenses. With a sharp focus on ramping production, cutting costs, innovating, and enhancing customer experience, Rivian anticipates generating gross profit in 2024.
The Technical Breakdown
The Enduro drive unit amalgamates the gearbox, power inverter and motor, resulting in notable cost savings. With this, Rivian's base model witnessed a whopping $8,000 price reduction, making the R1T pickup and R1S crossover more competitively priced at $74,800 and $79,800 respectively.
Additionally, with the new dual-motor system, the R1T's towing capacity increases to 11,000 pounds, and the R1S to 7,700 pounds. Off-road, the Enduro provides precise power distribution from front to rear. Furthermore, the R1T's range now extends to 410 miles. Reportedly, the R1S trails slightly behind at 390 miles. These numbers mark a significant improvement from their quad-motor versions.
For speed enthusiasts, Rivian’s software-enabled Performance Dual-Motor option propels the R1T and R1S from zero to 60 mph in a mere 3.5 seconds.
Production and Future Prospects
Originally slated for a 2024 release, the Enduro system's production for the R1T and R1S began May 2023. Rivian has already been utilizing the Enduro for its Amazon delivery vans since early 2023.
This commitment to Enduro is further reinforced by Rivian's substantial assembly plant expansion, an addition of 620,000 square feet. With Enduro as its cornerstone, Rivian has set ambitious targets, aiming to produce 52,000 units this year, more than double its 2022 output.
The Enduro motor is also expected to be the foundation of Rivian's upcoming R2 vehicle platform, targeting 2026, which will venture into smaller, more budget-friendly vehicles.
Financial Highlights and Future Aspirations
In the second quarter of 2023, Rivian incurred a loss per share of $1.08, narrower than the Zacks Consensus Estimate of a loss of $1.41 as well as $1.89 per share incurred in the year-ago quarter. The company generated quarterly revenues of $1.12 billion, outpacing the Zacks Consensus Estimate of $1 billion and rocketing from $364 million recorded in the year-ago quarter. During the second quarter, Rivian delivered 12,640 electric vehicles, up 59% from the preceding quarter and significantly higher than 4,467 EVs delivered in the corresponding quarter of 2022.
Rivian is actively pursuing additional avenues of innovation. Their upcoming initiative involves introducing the "max pack" battery during the upcoming autumn season. This particular battery option will be specifically paired with the Enduro configuration. It is projected to deliver an impressive estimated range of 400 miles on a single charge. For those who choose to enhance their Enduro performance with the max pack battery, a premium trim option will be accessible, commencing at a price point of $95,800. This presents a compelling alternative to the quad-motor setup, which provides a maximum range of 328 miles in its most extensive configuration, priced at $88,800.
Last Word
Rivian’s decision to develop its in-house motors not only showcases its cost-saving prowess but also positions the company distinctly in the EV market. By championing this innovative endeavor and successfully integrating it, Rivian appears well-poised for the future.
A few better-ranked stocks in the auto space include GentexCorp (GNTX - Free Report) , Commercial Vehicle Group (CVGI - Free Report) and Allison Transmission (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for Gentex’s 2023 EPS has been revised upward by 6 cents in the past 30 days. The Zacks Consensus Estimate for CVGI’s 2023 EPS has been revised upward by 8 cents in the past 30 days. The Zacks Consensus Estimate for Allison’s 2023 EPS has been revised upward by 14 cents in the past 30 days.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Rivian (RIVN) Redefines EV Tech With In-House Enduro Motor
It’s been two years since Rivian Automotive’s (RIVN - Free Report) EV debut and it has already faced myriad challenges. From production issues to navigating a crowded automotive landscape, the company has managed to emerge resilient. Now, it has taken a colossal step forward by unveiling its in-house electric motor design — Enduro.
In a bid to keep its costs down in a fiercely competitive industry, Rivian has adopted a strategy of vertical integration, producing components in-house with the unveiling of its new dual motor. This development is considered by CEO RJ Scaringe to be as pivotal as the company's initial venture into vehicle production.
CEO RJ Scaringe attributes Rivian’s cost reduction success to strategic optimization in material, overhead and logistics expenses. With a sharp focus on ramping production, cutting costs, innovating, and enhancing customer experience, Rivian anticipates generating gross profit in 2024.
The Technical Breakdown
The Enduro drive unit amalgamates the gearbox, power inverter and motor, resulting in notable cost savings. With this, Rivian's base model witnessed a whopping $8,000 price reduction, making the R1T pickup and R1S crossover more competitively priced at $74,800 and $79,800 respectively.
Additionally, with the new dual-motor system, the R1T's towing capacity increases to 11,000 pounds, and the R1S to 7,700 pounds. Off-road, the Enduro provides precise power distribution from front to rear. Furthermore, the R1T's range now extends to 410 miles. Reportedly, the R1S trails slightly behind at 390 miles. These numbers mark a significant improvement from their quad-motor versions.
For speed enthusiasts, Rivian’s software-enabled Performance Dual-Motor option propels the R1T and R1S from zero to 60 mph in a mere 3.5 seconds.
Production and Future Prospects
Originally slated for a 2024 release, the Enduro system's production for the R1T and R1S began May 2023. Rivian has already been utilizing the Enduro for its Amazon delivery vans since early 2023.
This commitment to Enduro is further reinforced by Rivian's substantial assembly plant expansion, an addition of 620,000 square feet. With Enduro as its cornerstone, Rivian has set ambitious targets, aiming to produce 52,000 units this year, more than double its 2022 output.
The Enduro motor is also expected to be the foundation of Rivian's upcoming R2 vehicle platform, targeting 2026, which will venture into smaller, more budget-friendly vehicles.
Financial Highlights and Future Aspirations
In the second quarter of 2023, Rivian incurred a loss per share of $1.08, narrower than the Zacks Consensus Estimate of a loss of $1.41 as well as $1.89 per share incurred in the year-ago quarter. The company generated quarterly revenues of $1.12 billion, outpacing the Zacks Consensus Estimate of $1 billion and rocketing from $364 million recorded in the year-ago quarter. During the second quarter, Rivian delivered 12,640 electric vehicles, up 59% from the preceding quarter and significantly higher than 4,467 EVs delivered in the corresponding quarter of 2022.
Rivian is actively pursuing additional avenues of innovation. Their upcoming initiative involves introducing the "max pack" battery during the upcoming autumn season. This particular battery option will be specifically paired with the Enduro configuration. It is projected to deliver an impressive estimated range of 400 miles on a single charge. For those who choose to enhance their Enduro performance with the max pack battery, a premium trim option will be accessible, commencing at a price point of $95,800. This presents a compelling alternative to the quad-motor setup, which provides a maximum range of 328 miles in its most extensive configuration, priced at $88,800.
Last Word
Rivian’s decision to develop its in-house motors not only showcases its cost-saving prowess but also positions the company distinctly in the EV market. By championing this innovative endeavor and successfully integrating it, Rivian appears well-poised for the future.
Rivian currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Better-Ranked Players in the Auto Space
A few better-ranked stocks in the auto space include Gentex Corp (GNTX - Free Report) , Commercial Vehicle Group (CVGI - Free Report) and Allison Transmission (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for Gentex’s 2023 EPS has been revised upward by 6 cents in the past 30 days. The Zacks Consensus Estimate for CVGI’s 2023 EPS has been revised upward by 8 cents in the past 30 days. The Zacks Consensus Estimate for Allison’s 2023 EPS has been revised upward by 14 cents in the past 30 days.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.