Rivian’s inventory rallies to highest in 2023 after posting robust deliveries

Rivian’s inventory rallies to highest in 2023 after posting robust deliveries

NEW YORK, July 7 (Reuters) – Shares of Rivian Automotive (RIVN.O) surged greater than 18% on Friday because it continued to rally after the electrical automobile (EV) maker reported better-than-expected quarterly deliveries early this week.

Rivian mentioned on Monday it delivered 12,640 automobiles within the second quarter on regular demand from prospects, beating market estimates. That end result was in keeping with that of market chief Tesla Inc (TSLA.O), which on Sunday reported document quarterly automobile deliveries fueled by incentives equivalent to costs cuts and U.S. federal credit.

The shares of a number of EV makers have risen since final week on market expectations of robust quarterly supply experiences.

Rivian set a document day by day buying and selling quantity on Friday, with greater than 180 million shares altering palms, in response to Refinitiv. The inventory is at the moment widespread amongst retail traders, being the second most actively traded inventory after Tesla on Constancy’s buyer platform and it’s among the many high trending equities on social media web site stocktwits.com.

A number of analysts have raised their value targets for Rivian’s inventory because the EV maker is seen as having overcome manufacturing and provide chain challenges that restricted deliveries.

Rivian’s inventory jumped to $25.63 on Friday, a 2023 peak. It has gained roughly 85% over the previous eight periods and is up almost 40% year-to-date.

“The Road noticed some additional proof that the long-awaited Rivian success story could be on its means and we consider extra excellent news is on the horizon as we glance into the following 12 to 18 months with Rivian,” Wedbush analysts mentioned in an investor be aware on elevating their value goal to $30 from $25.

Twenty-three Wall Road brokerages protecting Rivian on common suggest shopping for the inventory and set a median value goal of $24, Refinitiv information confirmed.

Rivian’s shares soared to an intraday document excessive of round $179 days after the corporate’s blockbuster preliminary public providing in November 2021, however they’ve sputtered because it has struggled to ship its electrical automobiles together with the R1T pickup vehicles and R1S SUVs.

Irvine, California-based Rivian mentioned it’s targeted on boosting manufacturing and reaffirmed its forecast of constructing 50,000 vehicles this 12 months regardless of shedding 6% of its 14,000 workforce.

Reporting by Chibuike Oguh in New York; Modifying by Richard Chang and Susan Fenton

Our Requirements: The Thomson Reuters Belief Rules.

Chibuike experiences on largely giant U.S.-based personal fairness corporations, together with Blackstone, KKR, Carlyle, and Apollo. He beforehand labored at Bloomberg Information, and holds grasp’s levels in journalism from New York College and Edinburgh Napier College.
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