Rivian heads into Monday's Q2 earnings release with short sellers stubbornly entrenched, the stock having bounced but the bear case very much intact.
The positioning setup is the story heading into the print — and it has barely changed from what the previous two notes described. Short interest edged down to 11.4% of the free float, roughly 140 million shares, after declining just 5% across the past month. That modest drift lower follows a period in which the stock rallied 24% from its May lows to $16.52 — and the shorts absorbed essentially every point of it. The ORTEX short score holds at 70.2, firmly in the top quintile of the broader universe and near the high end of its recent range. What remains absent is any mechanical pressure forcing a change of view: borrow availability is running at 114%, meaning shares available to lend comfortably exceed the current short position, and the cost to borrow has actually fallen 17% on the week to just 0.42% annualised. There is no squeeze building. Options positioning is equally calm — the put/call ratio at 0.86 is just above its 20-day average of 0.84, barely half a standard deviation from the norm, nowhere near the defensive extremes seen earlier in the year.
The analyst community is split, but leans constructive. The consensus mean target of $18.19 sits above the current price, implying room to run if the print delivers. Bulls focus on the R2 mid-size SUV launch later this year, Rivian's Amazon partnership, and an autonomous vehicle roadmap that could justify a premium multiple. Bears — and Rivian carries them in size — point to continued execution risk, negative earnings power (the P/E is deeply negative), and near-term profitability that remains elusive. DA Davidson's recent upgrade to Neutral from Underperform, with a $15 target, captures the middle ground: less pessimistic, but not yet convinced. Needham and TD Cowen both reiterate Buy ratings with targets of $23 and $20 respectively, anchoring the bull camp. EPS momentum scores rank in the bottom quintile of the ORTEX universe, a reminder that analyst estimates have been drifting the wrong way.
Institutional ownership adds one genuinely interesting wrinkle. Porsche Automobil Holding raised its stake by nearly 63 million shares to hold 16.4% of the company — a substantial vote of confidence from a strategic investor. Amazon holds another 12.4%. Together, these two cornerstone holders control nearly 29% of shares outstanding, which tightens the effective tradeable float and amplifies the significance of any short-covering move. At the same time, insider activity has been consistent selling: CEO Robert Scaringe and CFO Claire McDonough both sold shares repeatedly through May and into June at prices between $13 and $18, though the volumes are modest relative to total shares outstanding and carry significance scores at the low end of the ORTEX scale.
The earnings history adds context without comfort — the last comparable print in late April sent the stock down 6.5% on the day and nearly 12% over the following five sessions. Monday's release is therefore less a question of whether Rivian can grow and more a test of whether execution on R2 and unit economics have improved enough to shake a short base that has now survived two separate 20%-plus rallies without flinching.
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