Latest news with #Rivian
Yahoo
20 hours ago
- Business
- Yahoo
Should You Buy ChargePoint While It's Trading Below $1?
High prices could hurt electric vehicle adoption rates. Tariffs are adding more pressure to the electric vehicle (EV) industry. ChargePoint's sales are falling, and the company isn't profitable. 10 stocks we like better than ChargePoint › The electric vehicle (EV) industry is facing a multitude of headwinds right now. Tariffs, rising EV prices, and a worsening political environment for electric vehicles are causing turmoil among automakers. And the effects are being felt among the broader EV industry, including for electric vehicle charging company ChargePoint (NYSE: CHPT). The company's share price has fallen 60% over the past year and is now priced below $1. The pullback has some investors wondering whether they should buy the beaten-down EV stock. Here's why you shouldn't. EV sales are increasing in the U.S., but it's been slow going. Electric vehicles accounted for 8.1% of vehicle sales last year, a modest increase from 7.8% in 2023. One of the biggest hurdles to their adoption is that they're far too expensive for many buyers. The average transaction cost for a new electric vehicle was $59,200 in April, up nearly 4% from the same time last year, and 23% more expensive than the average selling price for gas-powered vehicles. ChargePoint doesn't sell EVs, but for the company's electric vehicle charging station business to do well, it needs Americans to begin adopting EVs at a much higher rate -- and they won't do that if prices continue rising. ChargePoint does operate in Europe, Mexico, and Canada, but the vast majority of its business is in the U.S., making it very dependent on American EV adoption rates. The political climate isn't exactly conducive to further EV growth, and as an EV investor myself, I think this is one of the biggest problems for the industry right now. Tariffs on automotive imports are already negatively impacting U.S.-based EV makers, including Rivian and Lucid. Both companies said on their recent earnings calls that tariffs are making the cost of vehicle production rise, sometimes by thousands of dollars. While some tariffs are paused and others are being negotiated, investors need to understand that uncertainty around them couldn't be any higher. Ford Motor Company, Stellantis, and General Motors all recently pulled their 2025 guidance because of uncertainty around tariffs. What's more is that Republicans in the House recently passed a bill that rolls back tax credit incentives for electric vehicle purchases, which are currently worth up to $7,500 for new bill is headed to the Senate, and there are differing views on whether it'll pass, but the point is that the party currently in power is inhospitable toward EV credits. With ChargePoint dependent on a strong EV industry, high tariffs, and the potential for EV tax credit elimination are significant problems. It's not just outside EV forces that are hurting ChargePoint; the company has its own problems as well. ChargePoint's sales dropped by 18% in fiscal 2025 to $417 million, and things don't seem to be getting better, considering that management says first-quarter 2026 sales will be $100 million at the midpoint of guidance, a nearly 7% drop from the year-ago quarter. ChargePoint was able to increase its subscription sales by 20% last year, but its largest revenue segment -- networked charging system sales -- fell by 35%. It's also important to note that ChargePoint isn't profitable. The company reported a non-GAAP (generally accepted accounting principles) net loss of about $159 million last year. That was an improvement from its loss of about $297 million in 2024, but with sales falling, it's going to be very difficult for ChargePoint to continue narrowing its losses. ChargePoint's stock is technically cheap right now, with the company's price-to-sales multiple just 0.75. But just because it's cheap doesn't make it a good value. I think the company and the broader EV industry will continue to face serious headwinds over the next few years that could slow growth further. With ChargePoint already seeing sales falling before some of the outside hurdles like tariffs and political turmoil showed up, I think it has too many obstacles to overcome right now for investors to hope for market-beating returns from its stock any time soon. Before you buy stock in ChargePoint, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ChargePoint 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% 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 Chris Neiger has positions in Rivian Automotive. The Motley Fool recommends General Motors and Stellantis. The Motley Fool has a disclosure policy. Should You Buy ChargePoint While It's Trading Below $1? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Automotive
- Yahoo
Prediction: Rivian Stock Is a Buy Before Aug. 5
Rivian's revenue growth rates are about to spike. Bigger scale will improve profitability. The stock's valuation doesn't fully account for these catalysts. 10 stocks we like better than Rivian Automotive › Rivian Automotive (NASDAQ: RIVN) investors have been very happy over the past month. The valuation of this electric car stock has surged by roughly 40%. Looking under the hood, however, it's easy to project significantly more growth to come. There are three major reasons investors should consider buying Rivian shares before the company's next earnings call, which is expected to occur sometime around Aug. 5. Rivian has been experiencing a period of sluggish sales growth in recent years. Its R1T model was released back in 2021, with the R1S variant launched the following year. Sales grew significantly after their launch, but with price tags that can approach $100,000 depending on options, the total addressable market for these vehicles was always rather small. Rivian's flatlining sales growth in recent years suggests the company has reached a level of market saturation with the only two vehicles in its lineup. All of this should change next year when the company begins shipping the first of three new models: the R2, R3, and R3X. All three are expected to have price tags of under $50,000, unlocking millions of new potential buyers that can finally afford one of the company's products. Analysts expect only 5% sales growth in 2025, a figure that bumps up to 41% in 2026. Once production of these models starts to scale, however, revenue growth could explode in 2027 and beyond. Last year, Rivian's management team promised investors it would achieve a positive gross margin by the end of the year. It took until the final quarter, but the company delivered. Last quarter, its gross margin improved even further into positive territory, matching Tesla's profitability levels. The biggest factor in achieving profitability as an electric vehicle manufacturer is achieving scale. The more cars a company sells, the more fixed costs can be spread over a larger volume of sales. If Rivian's mass market vehicles experience as much sales success as Tesla's Model Y and Model 3 vehicles, expect Rivian to experience significant operating leverage, pushing profitability even higher. The two factors above won't be realized before the company's next earnings call. In fact, it will take several more quarters for Rivian's new models to hit the market. From there, it may take another year or so for production to fully scale. The reason to buy Rivian now isn't that there are near-term milestones that will be reached over the next few months. Instead, the valuation simply looks way too cheap to pass up, even if investors have to wait a year or two for the biggest catalysts to arrive. Right now, Rivian stock trades at just 3.3 times sales. Tesla, meanwhile, trades at 12.5 times sales, while Lucid Group trades at 8 times sales. Both of those companies have experienced higher sales growth than Rivian in recent years. But once Rivian's new models hit the market, expect its sales growth and profitability to improve dramatically, earning a significantly higher valuation from the market. 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 $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% 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 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Prediction: Rivian Stock Is a Buy Before Aug. 5 was originally published by The Motley Fool Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Daily Mail
2 days ago
- Automotive
- Daily Mail
Win for Trump as VW pledges 'massive' investment in US jobs… to build controversial cars
Volkswagen's CEO confirmed the company is looking to make a 'massive' US investment in an attempt to avoid tariff blowback. Oliver Blume, VW's top boss, said he has been in contact with members of the Trump administration, including US Commerce Secretary Howard Lutnick. His strategy to shield VW from steep tariff costs appears two-fold: maintain open communication with US officials and continue ramping up investment in American businesses. 'Our primary contact is the US Secretary of Commerce, but ultimately, the issues also go through the US President's desk,' Blume told Süddeutsche Zeitung, a German newspaper. 'So far, we've experienced absolutely fair, constructive discussions.' Blume also said Volkswagen plans to continue its heavy investment in Rivian, an American electric vehicle startup that has not been without controversy. VW first announced its partnership with Rivian in June 2024, and completed the initial $1 billion investment in November. The deal gave Rivian a critical infusion of cash, and gave Volkswagen access to Rivian's next-generation infotainment software and electrical architecture. Both companies have said they're happy with the collaboration and are preparing for a second phase of investment more than $4 billion through 2026. Speaking to the German paper, Blume doubled-down on that cash promise, saying his company 'intends to continue investing in the US' including 'further, massive investments' in Rivian. For years, Volkswagen has leaned heavily into modernizing its vehicle interiors. Models across the brand — including entry-level Jetta sedans and high-end Atlas SUVs — were revamped with digital sliders and complicated infotainment screens. Often, the tech-happy interiors ditched buttons for climate and audio controls. Volkswagen has admitted that it went too far with this change, with the brand's top designer, Andreas Mindt, recently saying that next-generation models will go back to buttons. 'Honestly, it's a car. It's not a phone: it's a car,' Mindt said. Meanwhile, Rivian has spent billions on its proprietary interior technology, including its massive touchscreens. Imported cars are currently smacked with a 25 percent tariff when they enter the US Rivian has consistently dominated customer satisfaction ratings, with drivers praising the high-tech feel. But the EV startup has burned through a serious amount of cash. It has lost billions of dollars since its inception in 2009, and remains in the red. It hopes to achieve consistent profitability after 2026, when the company is expected to produce its lower-cost, smaller R2 SUV. Both companies have worked closely on the development of a new startup, Scout Motors. The startup is bringing extended-range pickups and SUVs to the US market: they are battery-powered, but will have a gas generator on board. VW's latest affirmation of its Rivian partnership is another attempt by the brand to grapple with Trump's 25 percent automotive tariffs. The German manufacturer initially told customers that it would display the cost of tariffs on its new-vehicle stickers. In early May, the company also confirmed it was bringing an Audi model's production to the US. A representative for the carmaker declined to detail which car would come. However, industry experts are speculating it will be the electric Audi Q4 E-tron. 'We want to localize more strongly in the USA,' a spokesperson told 'To this end, we are currently examining various scenarios. We are confident that we will make a decision on this in consultation with the Volkswagen Group before the end of this year as to what this will look like in concrete terms.'
Reuters
3 days ago
- Automotive
- Reuters
Rivian eyes new debt deal as expected vehicle deliveries slump, Bloomberg News reports
May 30 (Reuters) - Rivian Automotive (RIVN.O), opens new tab is working with JPMorgan Chase (JPM.N), opens new tab on a potential high-yield bond sale, in part to refinance its upcoming debt, Bloomberg News reported on Friday, citing people familiar with the transaction. The EV maker is looking to raise as much as $2 billion, partly to replace existing bonds that mature in 2026, the report said. JPMorgan is sounding out investors on the bond deal, with early pricing talks suggesting a yield around 10%. The transaction could launch as soon as next week, although the deal is still under discussion and may not proceed as planned, according to the report. Rivian and JPMorgan did not immediately respond to Reuters' requests for comment. The possible debt deal comes after Rivian lowered its 2025 deliveries forecast earlier in May, as U.S. tariffs on imported vehicles and auto parts threaten to disrupt the economy and reduce demand for its electric SUVs and pickup trucks. "About the impact of tariffs, it's a couple of thousand dollars of cost that we're going to see on a per-vehicle basis," CEO RJ Scaringe told Reuters earlier this month. Despite manufacturing its vehicles in the U.S. and sourcing most parts from North America, Rivian relies on Asian countries for essential components like lithium-ion batteries. These components are subject to significant duties, increasing the expenses for EV makers.
Yahoo
3 days ago
- Automotive
- Yahoo
Rivian eyes new debt deal as expected vehicle deliveries slump, Bloomberg News reports
(Reuters) -Rivian Automotive is working with JPMorgan Chase on a potential high-yield bond sale, in part to refinance its upcoming debt, Bloomberg News reported on Friday, citing people familiar with the transaction. The EV maker is looking to raise as much as $2 billion, partly to replace existing bonds that mature in 2026, the report said. JPMorgan is sounding out investors on the bond deal, with early pricing talks suggesting a yield around 10%. The transaction could launch as soon as next week, although the deal is still under discussion and may not proceed as planned, according to the report. Rivian and JPMorgan did not immediately respond to Reuters' requests for comment. The possible debt deal comes after Rivian lowered its 2025 deliveries forecast earlier in May, as U.S. tariffs on imported vehicles and auto parts threaten to disrupt the economy and reduce demand for its electric SUVs and pickup trucks. "About the impact of tariffs, it's a couple of thousand dollars of cost that we're going to see on a per-vehicle basis," CEO RJ Scaringe told Reuters earlier this month. Despite manufacturing its vehicles in the U.S. and sourcing most parts from North America, Rivian relies on Asian countries for essential components like lithium-ion batteries. These components are subject to significant duties, increasing the expenses for EV makers. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
