Rivian Shares Surge After Meeting 2024 Production and Delivery Expectations

Prime Highlights:

Rivian’s shares rose 24.5%, the biggest one-day gain since it went public in November 2021.

Rivian delivered 49,476 vehicles in 2024, including 12,727 vehicles delivered in Q4 and delivering 51,579 vehicles more than what the analysts estimated.

Key Background:

The electric vehicle manufacturer Rivian announced that it has met its production and delivery targets for 2024. On Friday, January 3, 2025, the company’s stock experienced a significant surge, closing at $16.49 per share, marking a 24.5% increase. This represented the highest daily percentage gain for Rivian since its market debut in November 2021, surpassing the previous record of 23.2% in June 2024, according to FactSet data.

Despite a 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, surpassing the projected 13,472. Throughout the year, Rivian adjusted its production targets for 2024, reducing its forecast four times. This revision was largely due to a shortage of certain components, which affected the production of its R1T pickup, R1S SUV, and commercial delivery vans. As a result, the production target was adjusted to a range of 47,000 to 49,000 units, down from the original estimate of 57,000 units.

However, Rivian has since resolved the component shortage, and reports indicate that the company is no longer facing this production constraint. This development provides some positive news for Rivian, following a difficult year in which its stock declined by 43% in 2024 due to cash burn and unmet production targets. However, even though that it has faced calamities, recent numbers for production and delivery have revived investor confidence into the company. Rivian will report its fourth-quarter 2025 earnings on February 20, 2025. Until now, the company has achieved production milestones and endured supply chain issues, which would be great news for investors and, more importantly, for the wider EV sector.

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