Latest news with #DeniseCherry
Yahoo
22-05-2025
- Automotive
- Yahoo
2 Reasons to Buy Rivian Now
Rivian has posted two consecutive quarters of record gross profits. Rivian removed $22,600 of cost of goods sold from each vehicle during the first quarter. Rivian is embarking on its first major marketing campaign to drive demand. 10 stocks we like better than Rivian Automotive › Rivian (NASDAQ: RIVN) stock is finding the opposite of what was set up to be a slightly quiet year for the automaker, which is in between vehicle launches. Rivian is dealing with tariff uncertainty, trying to boost deliveries, and constructing the expansion to its Illinois plant to enable production of its all-new R2 SUV. Despite trading well below all-time highs, the stock is quietly up 56% over the past year, but if you need more reason for optimism amid a slowing EV market, here are two. Rivian churned out its first quarter of gross profit during the fourth quarter of 2024, and it expects to generate a modest gross profit for the full-year 2025 period. That said, it still surpassed expectations when it posted a gross profit of $206 million during Q1, compared to $527 million during the prior year. Both automotive and software and services divisions contributed to gross profit. Automotive gross profit checked in at $92 million while software and services checked in at $114 million. Rivian also posted an 85% improvement in cash flow from operating activities during Q1, compared to the prior year. Not only was this is a huge step for Rivian in proving its vision to profitability, it also unlocks a $1 billion payment from Volkswagen Group due to reaching a milestone of two consecutive quarters of gross profit. Furthermore, this is an impressive result because the company's deliveries have slipped, forcing the gross profit improvement to come from minimizing cost of goods sold. Rivian did exactly this, removing over $22,600 in automotive cost of goods sold per vehicle delivered during Q1, compared to the prior year. This makes five consecutive quarters of improving gross margin, as you can see in the graphic below So far, Rivian has mostly relied on word-of-mouth for its marketing, and while its user base is small, it's very passionate. Rivian is trying to tap into the intense passion of its user base with its newest and first major marketing campaign. It will develop commercial advertisements based on real user stories. The advertising media plan will include spots on streaming services, social media, and possible buys on broadcast TV per Rivian's vice president of marketing, Denise Cherry. In addition to its commercial campaign, the company is focused on building brand awareness and customer experience through its demo drives. In fact, management believes the best way to drive demand is to have consumers experience Rivian products, and the company provided over 36,000 demo drives in Q1, more than any quarter to date. Ramping up its demo drives and marketing campaign on the eve of the R2 launch early next year could result in the most demand Rivian has seen in its young lifetime. The expected funding from Volkswagen in addition to Rivian's $7.2 billion of cash and cash equivalents is forecast to fund Rivian's operations through the ramp of R2 at its Illinois plant, as well as the R2 and R3 in Georgia. The R2 and R3 will enable the company to build scale, open the doors to a more mainstream and price-conscious consumer, and provide a path to positive free cash flow. While the company is highly speculative and burning cash at a rapid rate, the company is positioning itself for a strong 2026. The recent profitability streak and ad push are just two more reasons to be optimistic about buying Rivian ahead of time. Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy. 2 Reasons to Buy Rivian Now was originally published by The Motley Fool
Yahoo
13-05-2025
- Automotive
- Yahoo
Maybe 2025 Won't Be Such a Quiet Year for Rivian
The EV maker is launching a leasing deal with $0 down. Rivian is also initiating its first major marketing campaign. The R2 launch will be a critical turning point for the company. 10 stocks we like better than Rivian Automotive › Rivian Automotive (NASDAQ: RIVN) has come a long way in such a short time. It's challenging to produce vehicles, let alone make high-quality ones that are well-received by critics and consumers alike -- and Rivian has achieved that goal. 2025 was setting up to be a quiet year, with its next vehicle launch, the highly anticipated R2, not until 2026. But don't tell Rivian it's supposed to be a quiet year, as the company is attempting to spark lackluster sales in two ways. Come one, come all, Rivian is seemingly yelling at potential consumers as the company is bringing in spring with a new offer designed to boost sales. Through May, consumers can lease any Rivian R1 dual-motor electric vehicle (EV) with a Max battery and performance upgrade for $0 down. Rivian announced the "Nothing But Adventure" lease offer program, noting that it would cover your lease down payment with a $6,500 offer. Even better, consumers can also pair this savings with the usual $7,500 EV credit that is written into each lease. This is a move often seen when demand wanes, but it could be just the move Rivian needs right now to boost sales that have been lackluster in recent quarters. But its leasing offer isn't the only way Rivian is attempting to spark sales, and its second move will also build brand awareness. Investors know that Rivian's R1 vehicles have been a hit with consumers and critics, but what investors might not know is just how much consumers are invested in their Rivians. There are independently run Rivian Clubs of America spanning 35 states, which often include trips and other gatherings. Rivian is attempting to tap into this unique brand passion with its first major marketing campaign. The campaign, named "Real Rivian Adventures," will use actual stories from real Rivian consumers and turn them into advertisements. One example is the "Last Lemonade Standing," inspired by an owner's Facebook post. The ad situates a neighborhood boy using a Rivian vehicle outlet, in a feature unique to some EVs, to blend lemonade slushies to compete against another stand. The paid media plan will include spots on streaming services and social media, with possible buys on broadcast TV, per Rivian's vice president of marketing, Denise Cherry. This is a bigger move than investors might think, as Rivian has largely relied on word of mouth to grow its brand awareness. It's barely dipped its toes in advertising prior to this, and it could be just the move the young EV automaker needs in 2025 to spark sales in an otherwise quiet year. Now, investors can sit back and see how these moves impact sales throughout 2025. At the same time, investors will want to watch the development of the R2 launch coming in 2026. So far, everything is on pace for launch, and construction on the company's original plant for its additional production capacity is on track. Right now, it's all aboard for a marketing push, branding building, and launching the R2 -- maybe 2025 won't be so quiet for Rivian after all. Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $598,613!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $753,878!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Maybe 2025 Won't Be Such a Quiet Year for Rivian was originally published by The Motley Fool
