Rivian, the electric vehicle (EV) startup, exceeded expectations with its third-quarter vehicle deliveries, boosting its stock price and signaling progress towards profitability. The company reported producing 16,304 vehicles and delivering 15,564 vehicles in Q3, surpassing the analyst consensus of 14,000 deliveries. Rivian has set a goal to achieve an annual production of 52,000 vehicles by 2023. The positive delivery report follows the company’s successful Q2 delivery report, in which it delivered 12,640 vehicles, beating Wall Street estimates. Rivian currently produces electric pickup trucks, SUVs, and commercial vans at its plant in Normal, Illinois, with a production capacity of 150,000 units per year.
Last week, Baird analyst Ben Kallo anticipated Rivian’s strong Q3 deliveries and designated the company’s stock as a “bullish fresh pick.” He expects Rivian’s sentiment to improve as it benefits from an improving supply chain and cost efficiencies from in-house components. Additionally, Evercore ISI upgraded RIVN stock to outperform, suggesting that the company has the potential to become an EV giant alongside Tesla and BYD. Despite facing execution hiccups and supply chain challenges, Rivian’s stock has performed well, rising about 40% year-to-date. Currently trading below an early entry price of $24.62, the stock has an official buy point of $28.06.
Rivian’s success in exceeding delivery expectations reflects its progress in establishing itself as a reputable player in the EV market. With production and delivery figures steadily increasing, Rivian is demonstrating that it can scale up its operations and meet the growing demand for electric vehicles. As the company continues to navigate supply chain issues and optimize its production processes, investors and analysts are closely monitoring its performance and market position. Despite challenges, Rivian remains optimistic about its future growth and aims to achieve positive gross margins by 2024.
