Electric vehicle (EV) startup Rivian (RIVN) experienced a significant boost in its share price, surging more than 14% on Friday following an upgrade in its price target by Wedbush analyst Dan Ives. Ives highlighted the company’s “major turning point” in executing its strategy, resulting in an upward revision of Rivian’s stock price target from $25 to $30 per share.
This upward momentum in Rivian’s stock has been ongoing for over a week, with share prices witnessing a remarkable increase of over 80% since June 27, 2023.
The recent surge in Rivian’s stock can be attributed to its impressive performance, surpassing analyst expectations by delivering 12,640 electric vehicles and producing 13,992 units in the second quarter. This accomplishment alone resulted in a stock rise of over 13%. Subsequently, Rivian shares have continued their upward trajectory.
Although the company experienced a slow start in the beginning of the year, producing only 9,395 EVs in Q1, Rivian successfully addressed concerns by retooling its electric delivery van (EDV) assembly line. This reconfiguration allowed for the incorporation of the new Enduro drive units and LFP battery packs, aiming to enhance efficiency and streamline production, ultimately bolstering output for the remainder of the year.
In a previous interview, Rivian’s CFO, Claire McDonough, expressed optimism about the company’s supply chain, highlighting the progress made in overcoming challenges faced during the previous year. McDonough shared that during a recent board room meeting, the supply chain slide showed no red marks, indicating a healthy and well-functioning supply chain capable of meeting production demands.
Rivian’s expansion into the European market has also contributed to its positive stock performance. Amazon, in collaboration with Rivian, introduced a specially designed Rivian EDV for Europe. The first batch of 300 vehicles is set to hit the streets of Munich, Berlin, and Dusseldorf in the coming weeks. Rivian CEO, R.J. Scaringe, views this expansion as the initial step in tapping into the European market, offering reliable plant service and delivery intervals.
Although Rivian’s stock has soared by over 80% in the past ten trading days, reaching its highest price since December 2022, it is worth noting that share prices still remain more than 85% below their all-time highs achieved shortly after the company went public in November 2021.
