Highlights:
Rivian’s shares rose 24.5%, the biggest one-day gain since going public in November 2021.
Rivian delivered 49,476 vehicles in 2024, including 12,727 vehicles delivered in Q4 and delivered 51,579 vehicles more than analysts estimated.
Key background:
Electric car manufacturer Rivian has announced that it has reached its 2024 production and delivery targets. On Friday, January 3, 2025, the company’s stock experienced a significant increase, closing at $16.49 per share, marking an increase of 24.5%. This represents Rivian’s highest daily gain since it went on the market in November 2021, surpassing the previous record of 23.2% in June 2024, according to FactSet data.
Despite the challenging period, Rivian successfully delivered 49,476 vehicles in 2024, including 12,727 trucks and vans in the fourth quarter. The company exceeded analysts’ expectations by delivering 51,579 units for the year, with 14,183 units delivered in Q4, beating 13,472 expectations. Throughout the year, Rivian adjusted its production goals for 2024, lowering its forecast four times. The revision was largely due to a shortage of parts, which affected production of its R1T pickup, R1S SUV, and commercial delivery vans. As a result, production targets were adjusted to a range of 47,000 to 49,000 units, down from the original estimate of 57,000 units.
However, Rivian has resolved the part shortage, and reports indicate that the company is no longer facing this production situation. The development provides good news for Rivian, following a difficult year in which its stock fell 43% in 2024 due to cash burn and missed production targets. However, even though it has faced crises, recent production and delivery numbers have revived investors’ confidence in the company. Rivian will report its fourth-quarter 2025 earnings on February 20, 2025. So far, the company has hit production milestones and endured supply chain issues, which could be good news for investors and, more importantly, for the broader EV sector. .
Source link
