Traders have been happy to see Rivian’s automobile manufacturing and deliveries beat the corporate’s estimates.
Share value of the electrical automotive producer Rivian Automotive (RIVN 3.77%) rose on Tuesday after the corporate reported better-than-expected second-quarter cargo numbers. The excellent news comes after a brand new three way partnership with Volkswagen it is price as much as $5 billion for Rivian.
Rivian shares rose 6.5% on Tuesday and have been buying and selling up 4.2% by noon EDT.
Deliveries exceeded Rivian’s personal expectations
Rivian held an investor day final week the place administration stated the corporate will ship between 13,000 and 13,300 autos within the second quarter. As an alternative, the corporate delivered 13,790 autos, beating expectations and boosting investor optimism for the fledgling electrical automotive firm.
Rivian’s complete second-quarter automobile manufacturing of 9,612 additionally beat the corporate’s estimate of 9,100 to 9,300. The electrical carmaker stored its full-year manufacturing goal of 57,000 autos.
The nice instances roll on
Rivian’s share value has risen greater than 30% previously month after the corporate introduced a brand new three way partnership with Volkswagen final week. The collaboration will give Volkswagen some much-needed platform software program for its electrical autos and supply Rivian with the money it wants.
Volkswagen initially invested $1 billion in Rivian, with one other $4 billion anticipated within the subsequent few years. The businesses stated the three way partnership ought to assist Rivian and Volkswagen speed up innovation and decrease Rivian’s value per automobile.
Along with the latest excellent news, analysts have raised their value goal on Rivian shares twice yesterday. RBC Capital raised its annual goal value from $11 per share to $14 per share (Rivian shares are already buying and selling at $14.52). Canaccord Genuity raised its value goal on Rivian inventory from $20 per share to $30 per share.
Rivian traders will get extra perception into how the corporate is doing when it studies second-quarter monetary outcomes on Aug. 6, however till then, there’s loads of excellent news for shareholders.
Chris Niger holds positions at Rivian Automotive. The Motley Idiot positions and recommends Volkswagen Ag. The Motley Idiot has a disclosure coverage.
