Tesla is not the only EV company selling more cars than expected. Rivian’s (NASDAQ:RIVN) Q2 delivery numbers drew applause from investors earlier this week and the company appears poised to put previous woes to rest.
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The company delivered a total of 12,640 units in Q2, amounting to 59% improvement on Q1’s haul of 7,946 units and a 180% year-over-year uptick. The Street was expecting just 11,300 deliveries. Total production increased by 49% from 9,395 in 1Q23 to 13,992 units whilst exhibiting growth of over 200% compared to the same period a year ago. Rivian also stuck to its annual production guide of 50,000 vehicles, representing a 146% increase vs. FY22.
So, it was good news all around with the results confirming the progress being made after the company went through a sustained period of difficulties since going public toward the end of 2021. Production snags saw the EV start up miss targets, causing investors to sour on the once-hyped Amazon-backed name.
Assessing the latest numbers, Canaccord analyst George Gianarikas believes Rivian’s team has “turned a corner operationally as the company escapes its post-IPO operational quagmire.”
Looking ahead to the full Q2 readout on August 8, Gianarikas is hoping to get full confirmation that the future is bright for a company looking to make headway in the growing EV industry. “We expect a continued message of stabilization and optimism when Rivian reports its full earnings – as supply chain and operational bottlenecks ease and the R2 readies for its unveiling early next year,” Gianarikas said. “We continue to believe Rivian is on its way to capturing its fair share of the EV market over time through a sound, thorough vertically integrated strategy that should lead to a desirable customer experience and strong profitability over time.”
All told, Gianarikas remains optimistic Rivian can meet its ~50,000-unit annual target. The analyst maintained a Buy rating on RIVN shares, along with a $40 price target, suggesting shares will climb ~62% higher over the coming months. (To watch Gianarikas’s track record, click here)
Gianarikas’ objective is amongst the Street’s most exuberant. The average target currently stands at $23.50, representing ~5% decrease on the current price. Rating wise, the stock claims a Moderate Buy consensus rating, based on 10 Buys, 5 Holds 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 intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
