Rivian stock is rising to start the year with better-than-expected electric vehicle deliveries

Rivian (Raven) The stock jumped as much as 24% on Friday as the electric car maker reported better-than-expected results Vehicle sales For the quarter ending December 31.

Rivian said Friday that Delivery of approximately 14,200 EVs During the fourth quarter, its annual sales volume reached approximately 51,580 electric trucks – within the company’s prior guidance. Wall Street analysts had expected the company to deliver approximately 13,400 electric vehicles for this period, and 51,000 for this year.

Rivian stock has seen roughly 2024. Shares finished the year down 40% from 2023 and nearly 90% off the all-time high above $100 in company shares. High-profile market debut in 2021.

After a hugely successful IPO three years ago, the Amazon-backed electric car maker has done just that I faced a mountain of obstacles: First, wrestle with A Lack of necessary computer chips; Then, there it was The broader market has shifted away from electric cars Just as Competition from mainstay Tesla (TSLA) It was heating up. The company underwent a massive cost-cutting campaign, cutting its workforce in multiple rounds Layoffs Get started Early 2022 and Redesigning vehicle components To make production less expensive.

Even with these efforts, Rivian’s operating losses increased last year. In the third quarter of last year, Rivian’s revenue fell for the first time since going public, falling 35% to $874 million. Compared to the $980 million that analysts expected The company faced another production outage thanks to… Miscommunication with main supplier.

Rivian’s fourth-quarter deliveries number released Friday “confirms that supply issues have been isolated to the third quarter,” RBC Capital Markets analyst Tom Narayan wrote in a note to shareholders on Friday. Narayan holds a Neutral rating on the stock and sees shares hovering around $12 over the next 12 months. The stock traded above $16 on Friday.

Meanwhile, CFRA analyst Garrett Nelson maintained his sell rating on Rivian shares, with a price target of just $8, noting that “Rivian’s bottom-line losses are likely to continue for the foreseeable future.”

Rivian will report its full fourth-quarter results On February 20th.

Laura Bratton is a reporter for Yahoo Finance. Follow her on X @LauraBratton5.

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