NEW YORK, July 7 (Reuters) – Shares of Rivian Automotive (RIVN.O) surged greater than 18% on Friday because it continued to rally after the electrical car (EV) maker reported better-than-expected quarterly deliveries early this week.
Rivian mentioned on Monday it delivered 12,640 autos within the second quarter on regular demand from prospects, beating market estimates. That outcome was in keeping with that of market chief Tesla Inc (TSLA.O), which on Sunday reported report quarterly car deliveries fueled by incentives akin to costs cuts and U.S. federal credit.
The shares of a number of EV makers have risen since final week on market expectations of robust quarterly supply studies.
Rivian set a report each day buying and selling quantity on Friday, with greater than 180 million shares altering fingers, in keeping with Refinitiv. The inventory is presently common amongst retail traders, being the second most actively traded inventory after Tesla on Constancy’s buyer platform and it’s among the many high trending equities on social media web site stocktwits.com.
A number of analysts have raised their worth targets for Rivian’s inventory because the EV maker is seen as having overcome manufacturing and provide chain challenges that restricted deliveries.
Rivian’s inventory jumped to $25.63 on Friday, a 2023 peak. It has gained roughly 85% over the previous eight classes and is up practically 40% year-to-date.
“The Avenue noticed some additional proof that the long-awaited Rivian success story may be on its manner and we consider extra excellent news is on the horizon as we glance into the subsequent 12 to 18 months with Rivian,” Wedbush analysts mentioned in an investor be aware on elevating their worth goal to $30 from $25.
Twenty-three Wall Avenue brokerages overlaying Rivian on common suggest shopping for the inventory and set a median worth goal of $24, Refinitiv knowledge confirmed.
Rivian’s shares soared to an intraday report excessive of round $179 days after the corporate’s blockbuster preliminary public providing in November 2021, however they’ve sputtered because it has struggled to ship its electrical autos together with the R1T pickup vans and R1S SUVs.
Irvine, California-based Rivian mentioned it’s targeted on boosting manufacturing and reaffirmed its forecast of constructing 50,000 vehicles this yr regardless of shedding 6% of its 14,000 workforce.
Reporting by Chibuike Oguh in New York; Enhancing by Richard Chang and Susan Fenton
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