Rivian stock price soared to its highest level since January this year after announcing strong vehicle delivery numbers. It has risen by over 30% from its lowest level last week. In contrast, Tesla stock dropped from this month’s high of $430 to $393, even after reporting encouraging numbers.
Rivian Stock Jumped After Strong Delivery Numbers
RIVN shares jumped after the company announced strong vehicle delivery numbers. It made 12,613 vehicles and sold 12,194 to customers in this period. These numbers were better than the company’s guidance of between 9,000 and 11,000.
Most importantly, the company now predicts that its deliveries for the year will be better than expected. Management expects deliveries to be between 65,000 and 70,000, higher than the previous guidance of 62,000 to 67,000.
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These numbers are mostly due to the US-Iran war, which pushed gasoline prices to their highest level in years. As a result, many buyers moved to electric vehicles, which are seen as being more affordable to maintain.
The company hopes the new Rivian R2 will boost its sales and market share in the US. This vehicle starts at $54,000, making it cheaper than its other models. Also, it uses the North American Charging Standard (NACS), which gives it access to Tesla’s Supercharger.
Analysts are optimistic that Rivian’s revenue growth will continue, which will also boost its profitability in the long term. The average estimate is that Rivian’s revenue will jump 31% this year to $7.07 billion, followed by $11.6 billion next year.
The company’s loss per share is expected to improve from $3.07 last year to $2.73 this year, followed by $2.37 next year. Still, the main challenge is that Rivian remains a highly dilutive company, meaning it is at risk of raising money again. It ended the last quarter with $4.8 billion in cash and equivalents, a notable figure as it ended last year with $6.08 billion.
RIVN Stock Price Technical Analysis
The daily chart shows that the Rivian share price has rebounded from the year-to-date low of $12.75 to a high of $19.82. It has jumped above the 50-day and 100-day moving averages.
At the same time, the Relative Strength Index (RSI) has continued rising and is nearing the overbought level of 70. It has formed an inverted head-and-shoulders pattern. Therefore, the stock will likely continue rising as bulls target the key resistance at $25.
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