Rivian Stock: Buy or Sell? Surprising Q3 Vehicle Deliveries up by 140%

“Rivian Stock Gains Momentum with Q3 Surprise: Analyst Upgrades and Robust Deliveries”

Rivian Automotive’s stock (ticker: RIVN) is on an upswing as it recently received an upgrade from Evercore ISI analyst Chris McNally to a “Buy” rating from “Hold.” McNally also raised the price target to $35 from $30. This positive news came just ahead of Rivian’s third-quarter delivery report, which exceeded expectations.

In the third quarter, Rivian delivered a total of 15,564 units, surpassing Wall Street’s projections of around 14,000. This marks a significant improvement from the second quarter, where 12,640 cars were delivered, and the first quarter, which saw 7,946 units delivered. With first-half deliveries totaling 20,586 units, Rivian is now aiming to produce approximately 52,000 vehicles in 2023, up from its previous forecast of 50,000 units.

Rivian’s production rates have been on the rise, with seven out of the last eight quarters showing improvements. Canaccord analyst George Gianarikas stated, “We continue to believe Rivian is on its way to capturing its fair share of the EV market over time through a sound, thorough, vertically integrated strategy that should lead to a desirable customer experience and strong profitability over time.” Gianarikas rates Rivian shares as “Buy” with a $44 price target.

With this upgrade, approximately 64% of analysts covering Rivian stock have “Buy” ratings, and the average price target is $29, exceeding the average Buy-rating ratio for S&P 500 stocks, which stands at about 55%.

Despite the positive momentum, Rivian stock experienced some profit-taking, temporarily sliding back by about 2.8% to $23.60 in premarket trading. However, the overall outlook for Rivian remains optimistic as it continues to strengthen its position in the electric vehicle market.

Investors are closely watching Rivian as it aims to challenge established players like Tesla, Ford, and General Motors with its adventure-styled electric vehicles. The company’s recent performance suggests it could become a major player in the EV industry, joining the ranks of industry giants like Tesla and BYD.