Today's surge in Rivian Automotive's stock value is unrelenting.
Rivian Automotive (RIVN up 11.15%) has established itself as a significant player in the rapidly expanding electric vehicle (EV) market with a narrow selection of offerings. The company has dedicated itself to producing solely a fully electric pickup truck, an SUV, and a commercial delivery van. This concentrated focus could be a key factor in why Rivian shares are witnessing a rise today.
The Rivian R1T is among a handful of electric pickup truck options. While Tesla has entered the fray with its distinctive Cybertruck, the R1T's main rival is generally considered to be Ford's F-150 Lightning. News about the F-150 Lightning may have played a part in Rivian's shares surging by almost 10% Friday morning. At 1:55 p.m. ET, Rivian shares still exhibited a gain of 4.5%. This surge has contributed to an increase of more than 20% in Rivian's stock value over the past month.
Momentum on Rivian's side
Last month, Rivian informed investors it anticipated delivering between 50,500 and 52,000 EVs in 2022. This number is only marginally higher than 2023 projections. However, the company also recently shared optimistic news regarding its future financial position. Additionally, it plans to commence production of its next-generation R2 platform next year.
This positive information has boosted the stock, and it received another boost yesterday following Ford's November vehicle sales update. The decrease in Ford's F-150 Lightning sales by 17% last month compared to the same period in 2021 was noteworthy.
Ford has scaled back its production plans for its fully electric models and has been relying more on its internal combustion engine and hybrid electric options as well. This shift in focus leads to less competition for Rivian and its R1T truck. Yesterday's November update from Ford was a data point supporting this scenario.
Rivian was already gaining momentum due to announcements last month about the potential $5.8 billion investment from the Volkswagen Group and the possibility of securing up to $6.6 billion in additional funding via a U.S. Department of Energy loan.
With a strengthened financial state and less competition from Ford's electric pickup, Rivian seems poised for a promising 2025.
Investors are confident in Rivian's financial growth, as the company recently announced anticipating delivering between 50,500 to 52,000 electric vehicles (EVs) in 2022, slightly surpassing its 2023 projections. This positive financial outlook, along with plans to commence production of its next-generation R2 platform next year, has attracted significant interest in the company's stock, leading to a surge in finance opportunities for those interested in investing in Rivian.
As Ford has scaled back its production plans for fully electric models and relies more on internal combustion engine and hybrid electric options, it has lessened competition for Rivian in the electric pickup market, providing a favorable situation for the company to further develop and invest in its R1T truck.
