Rivian surprised Wall Street Monday, reporting better-than-expected third-quarter vehicle deliveries as the electric vehicle startup looks to ramp up production on its way to profitability. RIVN shares fell Monday afternoon, trading below an early entry.
Rivian produced 16,304 vehicles and delivered 15,564 vehicles in the third quarter, the company reported early Monday. The California-based operation announced that it believes it will reach its goal of 52,000 in annual production in 2023.
Analyst consensus predicted Rivian Q3 2023 deliveries would total 14,000, according to FactSet. In 2022, Rivian delivered 6,584 units in Q3.
The company topped estimates for its second-quarter delivery report in early July. The EV startup delivered 12,640 vehicles in Q2, compared with Wall Street estimates of 11,000 deliveries. In its Q2 report, Rivian raised its full-year production guidance to 52,000 vehicles, nearly double last year's production.
Rivian makes its vehicles in Normal, Ill. The plant has a production capacity of 150,000 units annually.
The EV startup currently produces an electric pickup truck, SUV and commercial vans. In the first half of 2023, Rivian produced 23,387 vehicles. In all of 2022, it churned out 24,337 vehicles and delivered 20,332 units. That number fell short of Rivian's stated production goal of 25,000 units for the year.
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Last week, Baird analyst Ben Kallo designated Rivian stock as a "bullish fresh pick" ahead of third-quarter deliveries on expectations RIVN would beat the consensus view.
"We see Q3 deliveries as a near-term catalyst and expect sentiment to improve as Rivan continues to realize cost benefits from an improving supply chain and the use of in-house components." Kallo wrote.
On Monday, just before Rivian released delivery figures, Evercore ISI upgraded RIVN stock to outperform, saying it could join Tesla and BYD as an EV giant. Tesla and BYD also released Q3 production and delivery figures early Monday.
Rivian stock rose early before falling 2.5% to 23.66 during Monday's market trade.
Rivian Stock
The Irvine, Calif.-based automaker has been on a roller coaster ride since its initial public offering two years ago, due both to overall market conditions and execution hiccups. Meanwhile, supply-chain issues have hampered the entire industry. Rivian has also had problems of its own complicate its launch.
Rivian stock is slightly below an early entry of 24.62. Shares have an official buy point of 28.06, according to MarketSmith analysis.
On Sept. 12, UBS initiated coverage of Rivian stock with a neutral rating and 26 price target. Rivian should reach positive gross margin in 2024 but larger volumes are not expected until later this decade and an additional capital raise will be needed to support future growth, according to UBS.
Rivian stock remains up about 40% higher so far this year. RIVN shares dropped 17% in August, following a three-month rally. The stock angled up more than 7% in September, on the back of five consecutive sessions with gains. Shares are trading about 69% below their IPO price of $78.
Rivian stock ranks ninth in IBD's Automakers industry group. RIVN has an 78 Composite Rating out of 99. Additionally, the stock has an 93 Relative Strength Rating and its EPS Rating is 42 out of 99.
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