Rivian shares jump as second-quarter deliveries beat estimates
The company delivered 12,640 vehicles in the second quarter
03 July 2023 - 21:40
byChavi Mehta
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An employee works on an assembly line at start-up Rivian Automotive's electric vehicle factory in Normal, Illinois, the US, April 11 2022. Picture: KAMIL KRZACZYNSKI/REUTERS
Rivian Automotive beat market estimates for second-quarter deliveries on higher production and stable demand for its electric vehicles (EV), sending the company’s shares up more than 14% on Monday.
The quarterly delivery numbers are a positive sign for the EV start-up that has for months struggled to raise output in the face of supply-chain disruptions and stiff competition from market leader Tesla.
“All automakers had supply chain issues in 2021 and 2022, but Rivian appears to be turning a corner and their 50k production goal for this year looks highly achievable post the Q2 number,” Needham analyst Chris Pierce said.
Rivian, which makes R1T pickup trucks and R1S SUVs, delivered 12,640 vehicles in the second quarter, compared with Visible Alpha estimates of 11,000 vehicles.
The company made 13,992 vehicles at its facility in Normal, Illinois, which was 4,597 more than in the first quarter.
As more mainstream vehicle giants are making up ground in the race to grab market share, there had been questions about how many of the EV players would actually still be on track by the end of the race, Danni Hewson, head of financial analysis at AJ Bell, said.
Tesla record
“These figures suggest Rivian might just have what it takes to stick it out.”
Rivian’s production and delivery numbers come just a day after Tesla beat estimates with record deliveries in the second quarter.
Some analysts said Rivian’s focus on developing its own drive unit to lower costs and reduce dependency on suppliers has helped the company stand out among other EV start-ups.
Rivian posted a smaller loss in the first quarter in May and its finance chief said last month the company expects demand to remain stable through 2023.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Rivian shares jump as second-quarter deliveries beat estimates
The company delivered 12,640 vehicles in the second quarter
Rivian Automotive beat market estimates for second-quarter deliveries on higher production and stable demand for its electric vehicles (EV), sending the company’s shares up more than 14% on Monday.
The quarterly delivery numbers are a positive sign for the EV start-up that has for months struggled to raise output in the face of supply-chain disruptions and stiff competition from market leader Tesla.
“All automakers had supply chain issues in 2021 and 2022, but Rivian appears to be turning a corner and their 50k production goal for this year looks highly achievable post the Q2 number,” Needham analyst Chris Pierce said.
Rivian, which makes R1T pickup trucks and R1S SUVs, delivered 12,640 vehicles in the second quarter, compared with Visible Alpha estimates of 11,000 vehicles.
The company made 13,992 vehicles at its facility in Normal, Illinois, which was 4,597 more than in the first quarter.
As more mainstream vehicle giants are making up ground in the race to grab market share, there had been questions about how many of the EV players would actually still be on track by the end of the race, Danni Hewson, head of financial analysis at AJ Bell, said.
Tesla record
“These figures suggest Rivian might just have what it takes to stick it out.”
Rivian’s production and delivery numbers come just a day after Tesla beat estimates with record deliveries in the second quarter.
Some analysts said Rivian’s focus on developing its own drive unit to lower costs and reduce dependency on suppliers has helped the company stand out among other EV start-ups.
Rivian posted a smaller loss in the first quarter in May and its finance chief said last month the company expects demand to remain stable through 2023.
Reuters
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