Rivian Stock: What Caused Today’s Huge Gain?

Rivian Stock

Rivian Stock (NASDAQ:RIVN)

On Tuesday morning, when the electric vehicle startup announced its third-quarter production report, Rivian stock jumped higher. At 10:45 AM ET, the stock price had increased by 9.9%.

What’s the Reason

During the third quarter, Rivian Automotive (NASDAQ:RIVN) manufactured 7,363 vehicles and sent roughly 6,600 to customers. That’s a 67% increase over Q2 output, which means the EV manufacturer is still on track to meet its annual output target of 25,000 electric trucks.

What Should We Do Now?

Even if Tesla’s quarterly delivery update released yesterday was less than satisfactory to investors, Rivian Automotive (NASDAQ:RIVN) nevertheless managed to increase its revenue by 42% over the same time last year. Market expansion of such magnitude is essential for Rivian’s success. Investors are becoming more optimistic about Rivian stock prospects for becoming a market leader since the company has dramatically increased output in response to persistent demand. Investors in Rivian will be heartened to hear that the firm achieved this increase despite challenging conditions for the global car industry due to supply chain interruptions.

Rivian stock plummeted roughly 70% in 2022 until today’s gain. Company officials had previously assured investors that they could produce 50,000 vehicles in 2022. Still, they stated they were limited by a lack of necessary components and supplies.

Investors are becoming more confident in Rivian stock after the company reiterated its yearly production goal yesterday, even though other EV manufacturers have continued to lower forecasts due to the same issues. Even though Rivian still has a ways to go, the company is off to a good start with a healthy order book and more than $15 billion in cash on hand as of the end of the second quarter. All these factors have contributed to today’s increased buying of Rivian stock.

Featured Image-  Megapixl @ Michaelvi

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About the author: I'm a financial journalist with more than 1.5 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.