Rivian Automotive, the electric-vehicle maker, experienced a surge in its stock price after an analyst raised the price target and expressed confidence in the company’s ability to execute its long-term business model.
Price Target Raised
According to Wedbush analyst Dan Ives, the new price target for Rivian (ticker: RIVN) is set at $30, up from $25. Ives also maintained his Outperform rating on the stock.
Executing on Long-Term Business Model
Ives highlighted that Rivian is finally making a significant turn in executing its longer-term business model and moving past previous setbacks and supply-chain challenges. This positive outlook comes after Rivian announced its second-quarter production and sales figures, which demonstrated substantial growth.
Impressive Second-Quarter Performance
In the second quarter, Rivian produced 13,992 electric vehicles (EVs) and sold 12,640 units. This represents a substantial increase compared to the first quarter, during which Rivian produced 9,395 vehicles and sold 7,946 units.
Investors were pleased to see this growth in production and sales following a decline in the first quarter. If Rivian continues its upward trend on Friday, it would mark the stock’s eighth consecutive session of gains, with a remarkable 76% increase over this period. This winning streak would be Rivian’s longest since September 2022.
Improved Production Management
Ives acknowledged that Rivian has resolved many of its production speed bumps and supplier issues. The company now seems to have better control over its production and supply chain, prioritizing the delivery of vehicles to eager customers.
Rivian’s Recent Performance
Rivian’s stock rose by 9.2% on Friday, reaching $23.60 per share. If it maintains this level, it will be the highest closing price since December 2022. Overall, the stock has climbed 28% this year.
In conclusion, Rivian Automotive’s positive second-quarter performance and its ability to address previous production supply-chain challenges have instilled confidence in investors and resulted in a notable increase in the stock’s value.