Rivian (RIVN) inventory jumped as a lot as 24% Friday because the EV maker reported better-than-expected car gross sales for its quarter ending Dec. 31.
Rivian mentioned Friday that it delivered almost 14,200 EVs through the fourth quarter, bringing its yearly gross sales quantity to roughly 51,580 electrical vans — throughout the firm’s prior steering. Wall Avenue analysts had anticipated the corporate to ship nearer to 13,400 EVs for the interval, and 51,000 for the 12 months.
Rivian inventory had a tough 2024. Shares ended the 12 months down 40% from 2023 and almost 90% from their all-time excessive above $100 within the firm’s high-profile market debut in 2021.
After its blockbuster IPO three years in the past, the Amazon-backed EV maker has confronted a mountain of obstacles: First, it grappled with a scarcity of mandatory pc chips; then, there was a wider market shift away from electrical automobiles simply as competitors from mainstay Tesla (TSLA) was heating up. The corporate has undergone an enormous cost-cutting marketing campaign, slashing its workforce in a number of rounds of layoffs beginning as early as 2022 and redesigning automobile elements to make manufacturing inexpensive.
Even with these efforts, Rivian’s working losses mounted up to now 12 months. In its third quarter final 12 months, Rivian’s income fell for the primary time because it went public, dropping 35% to $874 million versus the $980 million anticipated by analysts as the corporate confronted yet one more manufacturing disruption because of a miscommunication with a key provider.
Rivian’s fourth quarter deliveries quantity launched Friday “affirms that provide points have been remoted to Q3,” RBC Capital Markets analyst Tom Narayan wrote in a be aware to shareholders Friday. Narayan holds a Impartial ranking on the inventory and sees shares hovering round $12 over the subsequent 12 months. The inventory was buying and selling above $16 Friday.
In the meantime, CFRA analyst Garrett Nelson maintained his Promote ranking on Rivian shares, with a worth goal of simply $8, noting Rivian’s “bottom-line losses are more likely to proceed for the foreseeable future.”
Rivian will report its full fourth quarter outcomes on Feb. 20.
Laura Bratton is a reporter for Yahoo Finance. Observe her on X @LauraBratton5.
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