Rivian is expected to beat its Q3 2023 delivery reports. Now, Rivian has caught Jim Cramer’s attention.
“This is just one unbelievably positive note. If you’re looking for an [EV stock] that’s doing well, let’s point to Rivian,” said the Mad Money host.
This year the EV startup’s performance this year has been phenomenal. Rivian beat its delivery estimates in the first and second quarters, drawing bullish comments from Wall Street analysts. Rivian delivered 7,946 units in the first quarter, exceeding expectations. Rivian beat the Street’s estimates again in the second quarter after announcing 12,640 deliveries.
Baird analyst Ben Kallo labeled Rivian stock a “fresh pick” in his latest note.
“Concerns regarding third-party reports of weakening demand have led to recent weakness in the stock, and we believe underlying demand remains strong with production improving. We see Q3 deliveries as a near-term catalyst and expect sentiment to improve as Rivan continues to realize cost benefits from an improving supply chain and the use of in-house components,” wrote Kallo.
Before Kallo’s note, Rivian stock had fallen about 13% due to the consensus delivery estimate for Q3 2023 dropping from 15,000 to 14,000 units—based on FactSet data. Kallo had forecasted that Rivian would beat delivery estimates. After his prediction, Rivian shot up 6%.