Why Rivian Stocks Soared 14% On Tuesday And In September

Rivian stock

After beating the market in September, the Rivian stock of luxury electric vehicle (EV) manufacturers started in October. Investors were pleased with the electric vehicle Rivian Automotive Inc. (NASDAQ:RIVN) production results for the third quarter and its confirmation that it is on pace to meet its production goal for the entire year.

After falling on Monday, shares saw a sharp increase of 13.8% on Tuesday, which resulted in a gain of 10.3% for the Rivian stock’s performance throughout October. The S&P 500 index, on the other hand, had a rise of 5.7% in only the first two trading days of this month. The company’s announcement spurred the rise in Rivian shares on Tuesday that it has released production data for the third quarter and has reaffirmed that it is on pace to fulfill its production objective in 2022.

According to information provided by S&P Global Market Intelligence, the Rivian stock price increased by one percent in September. Considering that the S&P 500 lost 9.3% during the past month, that was a strong result. The upward performance of Rivian stock over the past month can be attributed to the announcement of a relationship with Mercedes-Benz, a premium manufacturer in Germany.

Current Status of Rivian Stock

Let’s begin with the factor that caused the Rivian stock to jump by more than ten percent on October 4. The electric car manufacturer made the announcement late on Monday night, after the market had closed, saying it had produced 7,363 vehicles and delivered 6,584 units during the third quarter. These figures increased by 67% and 47% compared to the previous quarter’s results. Additionally, the business reported that it is well on its way to meeting its yearly output goal of 25,000.

During the second quarter, Rivian had a total production of 4,401 automobiles and 4,467 vehicle deliveries. These figures were 2,553 and 1,227, respectively, for the year’s first three months. Due to the third quarter’s results, the total number of vehicles produced by the firm during the first nine months of 2022 is 14,317, while the number of deliveries is 12,278.

For Rivian to meet its production goal of 25,000 automobiles for the whole year, the company has to manufacture almost 10,700 vehicles during the fourth quarter. Given the company’s performance from the second to the third quarter, this objective appears to be within reach.

Although Rivian stock increased by less than 1% during the previous month, its performance was around 10% better than that of the overall market. The sole reason for its outperformance was a gain of 10.9% on September 8, following an announcement made by Rivian and Mercedes-Benz regarding their intention to create a joint venture to build a European factory that will manufacture electric vans for both companies. This announcement led to the company’s stock price increasing by 10.9% that day.

What’s Next for Rivian Stock?

Suppose you are an investor willing to take on higher levels of risk. In that case, you should seriously consider purchasing Rivian stock or, at the very least, adding it to your watch list. The firm has recently been doing an excellent job of growing manufacturing. It currently has relationships with both Amazon.com and Mercedes.

Rivian has not yet provided a date for the publication of its third-quarter results; however, it is anticipated that it will do so around the middle of November. Investors should pay attention to the company’s quarterly cash-burn rate concerning its cash position and what management has to say about meeting its production target for the whole year.

Featured Image: Megapixl @Rafaelhenriquepress

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About the author: Marianna is a writer and editor who specializes in PR, SEO and content marketing. She spent 3+ years as a human resources specialist where she developed an interest in investor relations.