After a difficult month, Rivian (NASDAQ:RIVN) may finally be nearing a turnaround. The electric truck producer has been gradually trending downward all month amid growing macroeconomic headwinds. However, RIVN stock is rising today on a highly positive catalyst.
Its first-quarter delivery data is in and better than Wall Street expected. According to data from Kelley Blue Book, Rivian has reported 8,145 electric vehicle (EV) registrations. This is a nice bump up from the 7,167 mark set by analysts. This doesn’t mean that the EV startup is out of the woods by any means. But for the investors who have become increasingly worried, these stronger-than-expected delivery statistics should be a reassuring sign.
What should investors expect from the former EV winner throughout the coming year? Let’s take a closer look at Rivian’s news and what it means for the young company.
What’s Happening With RIVN Stock
Rivian hasn’t reported too much good news recently. In fact, this is probably the best thing it’s reported in over a month. While RIVIN stock has been relatively volatile today, it is currently up almost 2% and looks primed to keep rising. It’s worth noting that shares initially dipped as markets opened but have since picked up plenty of momentum.
The good news doesn’t stop with delivery numbers, though. Electrek reports that Rivian has had fewer EVs on sale this quarter than rivals such as Ford (NYSE:F) and Lucid (NASDAQ:LCID), further indicating that it can sell the vehicles it produces. While EV leader Tesla (NASDAQ:TSLA) has been slashing prices on multiple vehicles, Rivian has proven that its futuristic trucks and SUVs aren’t priced too high. This may be another reason some experts see it as the next Tesla.
This news is essential after Rivian disappointed investors with its Q4 earnings report, in which its delivery guidance did not meet Wall Street expectations. The recent delivery report demonstrated precisely what investors wanted to see; that Rivian is still very much in the EV race. There’s also the distinct possibility that Rivian’s new plan to relocate its engineers closer to its factories in Normal, Illinois, and Irvine, California, will boost production, sending RIVN stock up even more. However, the delivery statistics seem to have experts more excited about Rivian’s growth prospects. As InvestorPlace contributor Josh Enomoto notes:
“The stronger-than-expected demand figure adds more weight to Rivian’s ambitious target of delivering 50,000 vehicles for 2023. Enticingly, the three most recent analyst assessments — from Morgan Stanley, Truist Financial, and Barclays – feature a reiteration of buy ratings. As well, among the three, the “worst” upside target is again $26 per share.”
Rivian Is Still Green but on the Rise
As noted, Rivian still has plenty of ground to make up after its challenging year. But investors shouldn’t lose sight of the bigger picture here. The new company is still relatively green but has repeatedly proven its ability to race in the face of unfavorable market conditions. That’s likely why the rating consensus on RIVN stock among Wall Street analysts is a “moderate buy” rating with an average price target of $28.11. Consider that RIVN currently trades at $14.50 per share. That’s some pretty high upside potential.
The company seems to be in an excellent position to keep rising, even as its factors, such as low insider buying, pose concerns for some experts. RIVN stock is still down the year, but it has never been out, and it certainly isn’t now.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
