Investors were happy to see Rivian’s vehicle production and deliveries outpace the company’s estimates.
Share prices of the electric automaker Rivian Automotive (RIVN 3.99%) were rising Tuesday after the company released second-quarter delivery numbers that were better than expected. The good news comes on the heels of a new joint venture with Volkswagen that’s worth up to $5 billion for Rivian.
Rivian’s stock price was up by as much as 6.5% Tuesday and was trading 4.2% higher as of noon EDT.
Deliveries topped Rivian’s own expectations
Rivian held an Investor Day event last week, where its leadership said the company would deliver between 13,000 to 13,300 vehicles in the second quarter. Instead, the company delivered 13,790 vehicles, topping expectations and boosting investor optimism in the young EV company.
Rivian’s second-quarter vehicle production total of 9,612 also outpaced the company’s estimate of between 9,100 to 9,300. The EV maker maintained its full-year production guidance of 57,000 vehicles.
Good times keep rolling
Rivian’s share price is up more than 30% over the past month after the company announced a new joint venture with Volkswagen just last week. The collaboration will give Volkswagen some much-needed platform software for its electric vehicles and provide Rivian with the cash it needs.
Volkswagen made an initial $1 billion investment in Rivian, with another $4 billion expected to come in the next few years. The companies said the joint venture should help Rivian and Volkswagen accelerate innovation and lower Rivian’s cost per vehicle.
Adding to all of the recent good news, Rivian’s stock received two price target increases from analysts yesterday. RBC Capital raised its one-year price target from $11 per share to $14 per share (Rivian stock already trades at $14.52), while Canaccord Genuity raised its price target for Rivian’s stock from $20 per share to $30 per share.
Rivian investors will get more insight into how the company is doing when it reports its second-quarter financial results on Aug. 6, but shareholders have plenty of good news to tide them over until then.
Chris Neiger has positions in Rivian Automotive. The Motley Fool has positions in and recommends Volkswagen Ag. The Motley Fool has a disclosure policy.
