Electric Vehicle Makers Stock Prices Soar As Sales Increase Across The Industry
Key Takeaways
- Rivian reported on Monday that it produced 13,992 vehicles at its Illinois manufacturing facility in Q2, and delivered 12,640 of them, topping Wall Street expectations
- Rivian (RIVN) share price rose sharply on Monday following the news, closing over 17% higher than its previous session
- In its release, the California company reaffirmed that it believes it will deliver on its prior 50,000 annual production guideline
On Monday, Rivian Automotive Inc. reported that it had built and delivered far more electric vehicles in the second quarter of 2023 than Wall Street analysts had anticipated. Following the report’s positive outlook, Rivian stock surged 17.4% on Monday’s half-session, closing at its highest price since February this year.
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What’s the latest in Rivian’s production milestones?
Rivian got off to a slow start in the first quarter of 2023, producing just 9,395 electric vehicles and delivering just 7,946.
It publicly stated that this sluggish start was because it was retooling its electric delivery van (EDV) assembly line, slowing progress. It made its intention to ramp up production over the course of the year clear, streamlining production and cutting costs to achieve its 50,000 annual guideline — a target that seemed optimistic at the time, to say the least.
Fast forward to today, and Rivian’s plans to ramp up production have ostensibly started to reap rewards. According to estimates gathered by FactSet, analysts expected around 11,000 vehicle deliveries over the course of Q2.
Rivian shattered this estimate, producing 13,992 vehicles and delivering 12,640 — firmly on course to achieve its annual 50,000 guidance, as reaffirmed by Rivian in Monday’s release.
What’s going on in the broader electric vehicle market?
Rivian revealed its robust production numbers just a day after electric vehicle market behemoths Tesla and BYD reported robust delivery figures.
Following bold calls to cut prices in January and March, Tesla saw its sales climb, reporting on Sunday that it delivered 466,000 cars in Q2 — an increase of over 83.5% from the prior year. Meanwhile, BYD, China’s EV market leader, reported nearly doubling its sales in the first half of 2023, with over 1.2 million vehicles sold in the six months through June.
The positive reports from Tesla, Rivian, and BYD instilled confidence and optimism across EV market investors and speculators alike: Rivian (RIVN) soared 17.4% to a closing price of $19.57 on Monday, while Tesla and BYD closed the day 6.9% and 4.5% higher respectively.
The bottom line
According to Alliance for Automotive innovation, EVs made up 8.6% of new vehicle sales in the US in Q1 2023, up from 5.9% for the first quarter of 2022. The EV industry is growing rapidly, with startups like Rivian and legacy automotive giants alike attempting to eat into Tesla’s dominance. And clearly, markets recognize this potential, as investor sentiment shifts bullish.
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