The Rivian Automotive Inc (NASDAQ: RIVN) share price was trading up 7.52%, adding to the rally witnessed on Monday when RIVN stock closed the day up 17.41% on upbeat Q2 delivery numbers that beat analysts' expectations by a decent margin.
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The EV manufacturer delivered 12,640 vehicles in Q2 2023, significantly improving from the 7,946 vehicles delivered in Q1 2023. The company also beat analysts' consensus estimates, pegged at 11,000 vehicle deliveries. The EV manufacturer made 13,992 vehicles during the quarter.
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Investor sentiment towards Rivian is positive, as evidenced by Monday’s rally and the gains made today, which could lead to further gains for investors over time. Despite the upbeat production figures, Rivian continues to burn through investor cash and is yet to become profitable.
Rivian manufactures electric R1T pickups and R1S SUVs for consumers. The company also reiterated its annual production target of 50,000 units. Rivian has produced roughly 23,400 vehicles through the second quarter, including electric delivery vans and consumer models.
The upbeat delivery numbers from Rivian followed similar positive numbers from industry leader Tesla, which delivered 466,140 vehicles globally during the same quarter. The upbeat delivery numbers also saw Tesla shares rally higher.
Rivian is keen to narrow its losses by cutting costs across the business while focusing on delivering more vehicles to its customers. The company’s first-quarter losses shrunk to $1.3 billion compared to $1.59 billion in a similar period last year.
The company’s annual target of delivering 50,000 vehicles seems more achievable now, given the significant production momentum witnessed in Q2, which should carry over to the second half of the company’s financial year.
Rivian also joined other leading EV manufacturers in adopting Tesla’s supercharger network, saying that it expects to incorporate Tesla charging ports into its vehicles starting in 2025 to allow its customers to charge their vehicles using Tesla’s massive EV charging network.
The company’s prospects are promising; hence, one could consider owning its shares as a solid player in the EV sector.
*This is not investment advice.
Rivian share price.
The Rivian share price was trading up 7.52% at $21.03, rising from Monday’s closing price of $19.56.
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