After learning that it had delivered 12,640 electric vehicles in its second quarter, above Wall Street projections, Rivian’s stock rose more than 14% on July 3, 2023.
The quarterly delivery numbers are encouraging for the EV startup, which has struggled to raise output due to supply chain disruptions and intense competition from market leader Tesla.
The company’s stock peaked at $19.69 on July 3, which led the EV startup to close more than 17% at $19.56, a figure the company has not received since February 2023.
Chris Pierce, an analyst at Needham, said, “All automakers had supply chain issues in 2021 and 2022, but Rivian appears to be turning a corner, and their 50,000 production goal for this year looks highly achievable post the Q2 number.”
As more mainstream auto giants are making up ground in the race to grab market share, there have been questions regarding how many EV players would remain on track by the end of the race. Since Rivian delivered 12,640 vehicles in Q2, Danni Hewson, head of financial analysis at AJ Bell, said, “These figures suggest Rivian may have what it takes to stick it out.”
However, according to some analyses, Rivian’s emphasis on creating its own drive to cut costs and lessen reliance on suppliers has helped the company differentiate itself from competitors.
During the second quarter, another EV manufacturer, Tesla, reported delivering more than 465,000 units globally. Similar to Rivian, the company’s stock rose sharply, closing up nearly 7% at $279.82.
Rivian, the EV startup, posted a slight loss in the first quarter in May, and its finance chief said last month that the company anticipates sustained demand for the remainder of 2023.
