04:00 PM EST, 03/07/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target of $10. RIVN unveiled its R2 electric mid-size SUV today, which will have a starting price of around $45K when it goes on sale in 2026. We think it's an attractive price point for an electric SUV, but we think RIVN is going to have difficulty generating a positive margin at that price in light of its Q4 cost of goods sold of over $137K. The bigger problems are the capital costs to expand the Normal factory and the status of its planned $5B factory in Georgia, combined with ongoing operating losses for the foreseeable future, which we think could put RIVN in a liquidity crunch similar to other EV upstarts. In short, we think there's a real risk that the R2 may never see the light of day. RIVN ended 2023 with $4.4B of net cash, down from $10.0B at the end of 2022, and we see its cash burn accelerating in the coming quarters as capex ramps up, pressuring RIVN's equity value. We remain at Sell, recommending that investors use the 13% bounce in RIVN shares today to exit positions.