© Reuters. FILE PHOTO: The Rivian name is shown on one of their new electric SUV vehicles in San Diego, U.S., December 16, 2022. REUTERS/Mike Blake/File Photo
By Chavi Mehta
(Reuters) -Rivian Automotive beat market estimates for second-quarter deliveries on higher production and stable demand for its electric vehicles, sending the company’s shares up more than 14% on Monday.
The quarterly delivery numbers are a positive sign for the EV startup that has for months struggled to raise output in the face of supply-chain disruptions and stiff competition from market leader Tesla (NASDAQ:).
“All auto makers had supply chain issues in 2021 and 2022, but Rivian appears to be turning a corner and their 50k production goal for this year looks highly achievable post the Q2 number,” Needham analyst Chris Pierce said.
Rivian, which makes R1T pickup trucks and R1S SUVs, delivered 12,640 vehicles in the second quarter, compared with Visible Alpha estimates of 11,000 vehicles.
The company made 13,992 vehicles at its facility in Normal, Illinois, which was 4,597 more than in the first quarter.
As more mainstream auto giants are making up ground in the race to grab market share, there had been questions about how many of the EV players would actually still be on track by the end of the race, Danni Hewson, head of financial analysis at AJ Bell, said.
“These figures suggest Rivian might just have what it takes to stick it out.”
Rivian’s production and delivery numbers come just a day after Tesla beat estimates with record deliveries in the second quarter.
Some analysts said Rivian’s focus on developing its own drive unit to lower costs and reduce dependency on suppliers has helped the company stand out among other EV startups.
Rivian posted a smaller loss in the first quarter in May and its finance chief said last month the company expects demand to remain stable through 2023.
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