Rivian Is Worst-Performing Car Stock of 2024

Investing

Published: November 12, 2024 6:35 am

24/7 Wall St. Insights

Rivian Automotive Inc. (NASDAQ: RIVN) is the worst-performing car stock this year.
Investors worry that the struggling EV maker will not survive as a public company.
Also: Dividend legends to hold forever.

CNBC made a list of car stocks ranked by stock performance in 2024. Of the 14 companies listed, Rivian Automotive Inc. (NASDAQ: RIVN) was at the bottom, with a share price down 55%. General Motors Co. (NYSE: GM) topped the list with a 55% gain. The second worst-performing stock was that of another small electric vehicle (EV) manufacturer. Lucid Group Inc. (NASDAQ: LCID) shares dropped 48%.

Rivian went public in November 2021. Its share price topped $100, which gave it a market cap of $86 billion. That is about double Ford’s market cap today. Ironically, Ford was one of Rivian’s early investors. Recently, though, Rivian’s shares dropped to $11 a share.

Investors have worried that Rivian will not survive as a public company. Like many companies that post significant losses, it is in a race to become profitable before it runs out of cash.

Difficult problems have hit Rivian this year. The most troubling of those is that supply chain issues have caused the EV company to cut back production. It described the problem, which is key to one of its engines, as “acute.”

Rivian’s production and delivery numbers are shockingly low for a company that relies on unit growth to profit. For instance, Rivian produced 13,157 and delivered 10,018 vehicles in the third quarter. At the same time, it cut guidance for annual production to between 47,000 and 49,000 units.

Another sign that Rivian cannot solve manufacturing problems was its third-quarter revenue. It fell to $874 million from $1.34 billion in the same quarter a year ago. The company posted a net loss of $1.10 billion, compared to $1.37 billion the year before.

Finally, Rivian operates in an EV market where demand is well below what was expected just a year ago. EV sales were supposed to climb in the United States as drivers switched out of gasoline-powered cars. However, that did not happen in 2024.

Are Electric Cars Really Better for the Environment?

It’s Your Money, Your Future—Own It (sponsor)

Are you ahead, or behind on retirement? For families with more than $500,000 saved for retirement, finding a financial advisor who puts your interest first can be the difference, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors who serve your area in minutes. Each advisor has been carefully vetted and must act in your best interests. Start your search now.

If you’ve saved and built a substantial nest egg for you and your family, don’t delay; get started right here and help your retirement dreams become a retirement reality.