Rivian Automotive (RIVN) shares soared by 23% on Friday, reaching their highest level in five months. The rally followed the electric vehicle (EV) maker’s announcement that its full-year production exceeded revised estimates and that a production issue affecting its output had been resolved.
2024 Production Figures
The Illinois-based manufacturer reported that it built 49,476 vehicles in 2024. This number surpassed its October forecast of 47,000 to 49,000 vehicles, which had been a downward revision from its original target of 57,000 vehicles earlier in the year. The adjustment stemmed from a disruption caused by a shortage of a shared component used in producing its flagship R1T trucks, R1S SUVs, and RCV commercial vans.
In its latest statement, Rivian confirmed that the component shortage is “no longer a constraint on Rivian’s production.”
Fourth Quarter and Full-Year Deliveries
- Fourth Quarter Production: 12,727 vehicles
- Fourth Quarter Deliveries: 14,183 vehicles
- Full-Year Deliveries: 51,579 vehicles
Rivian had earlier anticipated deliveries in the range of 50,500 to 52,000 vehicles for 2024, slightly below the high end of its guidance.
Stock Performance
While Rivian shares surged on this positive news, marking significant gains for the day, the stock has still faced challenges over the past year. Despite the recent uptick, Rivian shares remain down approximately 20% year-over-year.
Market Implications
Rivian’s ability to address its production constraints and exceed revised targets could signal operational improvements that may bolster investor confidence. However, the broader challenges in the EV market, including supply chain issues and increased competition, remain key factors for the company’s long-term outlook.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Investors should conduct thorough research or consult with financial professionals before making investment decisions.
