Why Rivian Stock Popped Today
Rapidly rising R2 sales could pave the way for further gains for shareholders.
Shares of electric vehicle manufacturer Rivian (RIVN) surged over 8% on Monday, following positive remarks from analysts. The company's third-quarter revenue surged 38% year-over-year to approximately $2.2 billion, driven by a 46% increase in deliveries to 19,248 vehicles. The strong sales were primarily due to the launch of their new midsize SUV, the Rivian R2.
Executives praised the customer and media response to the R2, with Rivian raising its full-year delivery target to between 67,000 and 70,000 vehicles, up from the previous range of 65,000 to 70,000. Analyst Joseph Spak from UBS predicts the EV company's share price could rise another 30% to $17, spurred by anticipated growth in R2 sales.
He believes the software and services segment will also contribute to Rivian's profitability, with third-quarter revenue and gross profit increasing 45% and 66%, respectively.
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