Rivian Remarkable Rise: Rivian Automotive (RIVN.O) took a big step forward when it released third-quarter delivery numbers that beat market expectations and showed how hard the company is working to increase production to meet the growing demand for its high-tech electric pickup trucks and SUVs.
The young business, which had just come out of the technical crucible in Irvine, California, proudly laid out its plans for 2023. The company now thinks it will make 52,000 electric cars this year, more than the 50,000 cars it first thought it would make. In August, this goal was raised. This move was made because of how well the company deals with problems in the supply line.
Concerns about a possible slowdown in U.S. demand for electric cars because of higher borrowing costs make Rivian’s delivery details important. Rivian takes a different approach and doesn’t lower its prices, while competitors like Tesla do so in response to this trend. To depend less on outside sources, the company is moving toward making Enduro powertrains in-house and working to cut costs.
According to the complex network of numbers, Rivian sent out an amazing 15,564 cars during the quarter that finished on September 30. This was a big increase of 23% from the previous quarter and a big win over Visible Alpha’s predictions of 14,740 cars.
Also Read: Rivian Automotive: Expanding Manufacturing Amidst Electric Car Market Challenges
Despite this great accomplishment, though, a short drop in the price of Rivian’s stock made buyers talk about what might happen next. Chris Pierce, an expert at Needham & Co, says there was a slight shortfall based on what was expected in the year’s first half.
At its production plant in Normal, Illinois, Rivian made 16,304 cars, which is a big jump from the 13,992 vehicles made in the second quarter. The master of cars is now on track to build just over 12,300 vehicles in the current quarter. At this rate, the company is getting closer to its lofty goal for the whole year.
Rivian is still an oddity in a market where prices are falling, even as the forces that pull EV retail prices to a new balance change. While Tesla lowers costs to boost sales, the innovative company in Irvine stays on top by sticking to a strategy of not spending too much.
Even though the economy is slowing down, the American electric car business, which is a great place to develop new ideas, is still doing well. The market research company Canalys Research sees the American EV sector as one of the places where electric mobility is growing the fastest. This is a sign of resilience in the face of macroeconomic changes and continued growth in the ever-changing electric vehicle landscape.
Our Reader’s Queries
Is Rivian projected to go up?
Curious about Rivian Automotive’s stock forecast? According to analysts, the company’s 12-month average price target is $25.63. So, what’s the upside potential based on this target? It’s estimated to be 7.69%.
Is Rivian stock ever going to recover?
According to UBS, Rivian is expected to achieve a positive gross margin in 2024. However, the company is not expected to see larger volumes until later in the decade. To support future growth, an additional capital raise will be necessary. Currently, Rivian produces an electric pickup-truck, SUV, and commercial vans.
Why is Rivian stock rising?
Great news for Rivian! The Federal Reserve has signaled the end of the interest rate hike cycle, causing Treasury yields to drop. This has led many to predict rate cuts in 2024. For aggressive growth stocks like Rivian, this is a positive development as they will likely require more capital to continue expanding. This latest news is yet another tailwind for Rivian, providing further momentum for the company’s growth.
Will Rivian survive long term?
In financial terms, 2028 is an eternity away and projections indicate that the company won’t generate positive earnings until then. To keep Rivian afloat over such a lengthy timeline, significant further dilution seems inevitable. Unfortunately, the company lacks the resources to weather so many years of losses.