Tesla isn’t the only electric vehicle company selling more cars than expected. Rivians (NASDAQ:RIVN) Second-quarter shipment numbers drew plaudits from investors earlier this week, and the company appears poised to address earlier issues.
The company shipped a total of 12,640 units in the second quarter, up 59% from the 7,946 units in the first quarter and up 180% year over year. The Street expected just 11,300 deliveries. Total production rose 49% to 13,992 units from 9,395 in Q1 23, representing growth of over 200% compared to the same period last year. Rivian also held to its annual production target of 50,000 vehicles, a 146% increase from FY22.
So it was good news all round, as the results confirmed the progress made after the company endured a sustained period of trouble since going public in late 2021. Production backlogs caused the EV start-up to miss its targets, causing investors to sour about the once-hyped Amazon-backed name.
When evaluating the latest figures, Canaccord analyst George Gianarikas is convinced that Rivian’s team “has made the operational turnaround as the company emerges from the operational quagmire after the IPO”.
Looking ahead to the full second-quarter release on August 8, Gianarikas is hoping for full confirmation that the future is bright for a company looking to make headway in the growing electric vehicle industry. “We anticipate an ongoing message of stabilization and optimism as Rivian reports its full earnings – as supply chain and operational constraints ease and the R2 is poised for its unveiling early next year,” Gianarikas said. “We remain convinced that Rivian is on track to capture its fair share of the electric vehicle market over time through a solid, thorough, vertically integrated strategy that will result in a desirable customer experience and strong profitability over time should.”
All in all, Gianarikas remains optimistic that Rivian can reach its annual target of around 50,000 units. The analyst kept a Buy rating on RIVN stock, along with a price target of $40, suggesting the stock is poised to climb by around 62% in the coming months. (To view Gianarikas’ track record, click here)
The goal of Gianarikas is among the most exuberant of the road. The average target is currently $23.50, down about 5% from the current price. In terms of valuation, the stock receives a consensus rating of ‘Moderate Buy’ based on 10 ‘buy’, 5 ‘hold’ and 1 ‘sell’. (See Rivian Stock Forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is for informational purposes only. It is very important to do your own analysis before investing.