Rivian (RIVN) shares fall after the electric vehicle (EV) maker said it expects fewer deliveries in 2025 than it did in 2024. CFRA analyst Garrett Nelson joins Morning Brief with Seana Smith and Brad Smith to discuss Rivian’s fourth quarter results, in which the auto company post revenue of $1.73 billion and a narrower-than-expected loss of $0.46 per share.
“The quarter was a positive. They beat on the bottom line … This was really driven by software and services revenue, which is their agreement, the [joint venture] JV agreement that they recently signed with Volkswagen (VWAGY),” Nelson says.
He explains the “very high margin revenue stream” enabled Rivian to “generate a positive gross margin overall” during the quarter, which “is a milestone.”
“The negative was the 2025 guidance, and I think that’s much more important,” the analyst says, adding, “There’s a real demand issue here [as] we’ve seen EV growth slowing.”
Also, Japan is reportedly pursuing an investment from Tesla (TSLA) in Nissan (7201.T, NSANY), according to reporting from the Financial Times, after merger talks fell through between Nissan and Honda (HMC, 7267.T). CFRA analyst Garrett Nelson shares his read of the report and the electric vehicle (EV) space at large with Seana Smith and Brad Smith on Morning Brief.
“No question, it’s a difficult environment, especially if you’re a small EV startup that maybe went public three or four years ago,” Nelson says, nodding to Nikola’s (NKLA) recent bankruptcy filing.
“I think Nissan would like to do a deal with Tesla. We know that there are discussions with Honda, [that] reportedly fell through recently,” the analyst says, adding, that Nissan is “in a very difficult spot” as “they’re like a lot of traditional automakers and that they’ve been losing market share for a long time now, both to Chinese upstart automakers as well as companies like Tesla who have grown their volume dramatically over the last few years.”
He notes that “Tesla hasn’t indicated any interest in Nissan, but we do think they should take a look at this opportunity. It could make sense for them.”
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