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Rivian is on observe to fulfill its manufacturing goal of 25,000 autos this 12 months with a document third quarter. Shares of Rivian rose almost 8% in premarket buying and selling on Tuesday after the announcement.
Rivian’s optimistic replace got here after greater rival Tesla blamed logistical hurdles for lacking market expectations for the variety of vehicles it handed over to prospects within the third quarter.
Tesla shares closed down 8.6% on Monday, wiping out greater than $71 billion from the corporate’s market worth in a single session, or over $5 billion greater than what Rivian has misplaced this 12 months.
With a complete of 14,317 autos produced up to now this 12 months, Rivian has to make greater than 10,500 models within the final three months of the 12 months to fulfill its manufacturing goal.
“We view the reiterated FY22 manufacturing goal as a very powerful part of the discharge, offering incremental consolation within the firm’s potential to more and more navigate the difficult provide chain backdrop,” Truist Securities analyst Jordan Levy stated.
Irvine, Calif.-based Rivian halved its annual manufacturing goal from 50,000 models in March, because it battled provide chain snarls.
Final week, a court docket rejected a joint proposal to safe native incentives for Rivian’s $5-billion manufacturing plant in Georgia, the place the corporate proposes to provide 400,000 autos yearly.
Rivian at the moment makes the R1T pickup truck, the R1S sports activities utility car and supply vans for Amazon at its manufacturing facility in Regular, Illinois.
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