Rivian stock has skyrocketed today following news that the automaker delivered far more trucks in the year’s first quarter than anticipated.
Rivian is in the need of some good news, especially as it tackles production cost issues, chip supply problems, and overall profitability concerns. Luckily, it got that news today, as Cox Automotive and Kelly Blue Book reports show that the automaker delivered more vehicles than expected in the first quarter of the year, placing the company well on track to deliver on its 50,000 unit goal for 2023.
According to reports from Cox Automotive and a recent report from Kelly Blue Book, in which the organization totaled the number of Rivian deliveries from state registrations, Rivian delivered 8,145 vehicles in the first quarter of this year, dramatically beating the analyst expected ~7,000 vehicles, initially reported by Benzinga.
On this news, the automaker’s stock jumped nearly 4% in pre-market trading and has continued upward, nearing a 10% gain overall today.
Today’s rapid stock growth follows some of the worst stock performance Rivian has seen since its IPO. The automaker has undergone two significant layoffs and has introduced numerous cost-cutting measures to help it reach profitability as soon as possible. Only further pulling the stock downward, Rivian raised a new corporate bond to help fund its second-generation truck development, from which it earned an estimated $1.5 billion.
Despite Rivian’s downward stock movement since its IPO, many institutional investors remain optimistic, holding buy or hold ratings for the stock. Most investment groups currently give the Rivian stock a price target between $20-$30 per share.
Perhaps the best news for Rivian investors is that the company may have more good news on the way. The American automaker is reportedly working with Amazon to rework its electric delivery van supply deal, which could allow the automaker to begin to sell its EDVs to other companies. Further, now that Rivian has established a new production line for its dual-motor drive units, it is well on its way toward delivering more vehicles than ever.
William is not a Rivian shareholder, nor does he hold any Rivian bonds.
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