Rivian Stock: Gains as Core Customer Amazon Unveils More Electric Delivery Trucks Rivian Stock: Gains as Core Customer Amazon Unveils More Electric Delivery Trucks

Starting an electric vehicle Rivian (RIVN) will report earnings late Wednesday, as a key customer Amazon (AMZN) is rolling out more than 1,000 of its electric trucks in time for holiday deliveries. Rivian’s stock rose.


The rollout follows a launch in July that saw hundreds of EDVs deployed in select cities. Amazon has ordered 100,000 electric delivery trucks in total, which it expects to have on hand by 2030, the company said in a recent statement.

Rivian was the first company to launch an electric truck with the R1T model in September 2021. Later that year, it unveiled its R1S sports utility vehicle.

However, increasing production has been difficult. Supply chain woes and inflation have driven up parts and labor prices. As a result, Rivian increased the prices of its vehicles in March 2022, which caused some buyers to cancel orders.

However, it managed to produce 4,401 vehicles and delivered 4,467 EVs in the second quarter. At the time, it confirmed its goal of producing 25,000 EVs in 2022, halving its previous forecast.

Rivan’s backlog for the R1T pickup has grown to around 98,000.

But there have been growing pains. Rivian’s stock fell in October when the automaker announced a recall of nearly all of its vehicles to fix a steering defect.

However, the company is moving forward with new partnerships. In September, Rivian and German automaker Mercedes-Benz signed a memorandum of understanding to build large electric trucks for each of its brands.

“With production expected to reach 25,000 for the year, a key Mercedes partnership and Amazon a key partner, we believe Rivian has the potential to become one of the main leaders in the electric vehicle industry over the next decade,” said Wedbush analyst Dan Ives. he told IBD. “However, given the macroeconomic challenges, chip shortages and production skepticism, the Street has raised some key questions about the company’s future.”

Ives, however, is optimistic that Rivian can continue to ramp up production amid strong demand.

Rivian earnings

It calculates: FactSet analysts expect Rivian to cut year-over-year losses by 77% to $1.79. But that loss would dwarf the loss of $1.62 per share in the previous quarter. Sales are seen at $550.3 million versus $364 million in the previous quarter.

Results: Check back on Wednesday.

In October, Rivian announced that it produced 7,363 electric vehicles at its plant in Normal, Ill., and delivered 6,584 EVs during the third quarter ending Sept. 30, 2022.

Rivian Stock

Shares rose 2.3% to 32.03 in trading today. Rivian stock is consolidating with a buy point of $40.96, according to MarketSmith.

The stock is far from its all-time high near 180 in November 2021. Rivian stock has weak fundamentals, with an RS score of just 27 out of a possible best of 99.

Shares are trading just below the 50-day downtrend line.

Rival EV launch Clear ( LCID ), which reports earnings late Tuesday, fell 3.2%. Chief EV Tesla ( TSLA ) slipped 2.8%.

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.


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