Rivian Automotive (NASDAQ: RIVN) stock soared on Monday morning, rising as much as 16.4% at one point. The gains came after the company reported second-quarter deliveries that soared 60% over the first quarter.
Rivian delivered 13,992 vehicles in the second quarter, up from 8,387 in the first quarter. The company also said that it expects to produce 25,000 vehicles in 2023.
The strong delivery numbers were a relief to investors, who have been concerned about Rivian's production ramp-up. The company had previously cut its production goal for 2022 in half, due to supply chain constraints.
However, the strong delivery numbers in the second quarter suggest that Rivian is starting to overcome those challenges. The company also said that it has increased its production capacity at its factory in Normal, Illinois.
The strong delivery numbers and the company's optimistic outlook for 2023 helped to boost investor sentiment on Monday morning. Rivian stock is still down significantly from its high of $179.47 in November 2021, but the recent gains suggest that the company is starting to regain investor confidence.
Here are some of the other factors that may have contributed to the rise in Rivian stock on Monday morning:
The broader market was up on Monday, as investors were encouraged by positive economic data.
Rivian's rival, Tesla, also reported strong delivery numbers on Sunday. Tesla delivered 466,000 vehicles in the second quarter, up 83.5% from a year ago.
Rivian is expected to go public later this year, which could also be driving up investor interest.
It remains to be seen whether Rivian stock can sustain its recent gains. However, the strong delivery numbers and the company's optimistic outlook for 2023 are certainly positive signs.
How high will Rivian stock rise?
It is difficult to say how high Rivian stock will rise in the future. However, the company has a number of factors working in its favor, including strong demand for its vehicles, a growing addressable market, and a strong management team.
If Rivian can continue to ramp up production and meet demand, its stock price could continue to rise. However, there are also some risks to the company, such as the ongoing chip shortage and the potential for increased competition.
Overall, the long-term outlook for Rivian stock is positive. However, investors should be prepared for some volatility in the near term.
