Rivian Automotive Inc (NASDAQ:RIVN), a manufacturer of electric trucks, saw a rise in its share price (Rivian stock) on Tuesday as the business reaffirmed its production guide for the year. This came despite the fact that the company’s deliveries fell short of the expectations that were established by the market.
Rivian (NASDAQ:RIVN) said late on Monday that it delivered 6,584 automobiles in the third quarter while producing 7,368 vehicles at its production location in Illinois. According to a letter from RBC Capital Markets, the general consensus of expectations had been expecting delivery of about 7,000 automobiles.
However, the perspective that Rivian provided was of greater interest to the market. According to a statement made by the firm, it thinks it is on pace to build 25,000 vehicles this year, which is in accordance with the advice it provided before. RBC analysts have stated that Rivian has to build around 10,700 vehicles in the remaining time of the year in order to meet the objective; nevertheless, they believe that this is achievable given the improved supply chains.
RBC believes that Rivian’s announcement that it will maintain its production target for the year “could offer a boost to investor confidence.”
Rivian Stock Performance
The shares increased by 8.8 percent in premarket trading, reaching a price of $34.70 as a result of the confirmation of the forecast. The move indicates that investors had been cautious after production projections were cut earlier in the year from about 40,000 vehicles, with Rivian blaming supply-chain difficulties for the reduction.
Due to the fact that certain investors have lost interest in electric car start-ups, the Rivian stock price has dropped by 69% in 2022. In its first public offering, which took place in November 2021, it was estimated to be worth more than $100 billion. Despite the fact that Rivian has $15.5 billion in cash on its balance sheet at the end of the second quarter, the company has said that it anticipates incurring an operational loss of $5.45 billion throughout this year.
The firm has stated in the past that its present cash situation should be sufficient to allow it to start its planned new R2 manufacturing platform at a plant in Georgia in the year 2025. This would allow the company to produce additional models in addition to its current pickup truck and SUV. Rivian is also responsible for the production of electric delivery vans for Amazon (AMZN), and the company announced a month ago that it would collaborate with Mercedes (MBG. GERMANY) to develop commercial cars.
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Author Valerie Remorosa 
