Rivian Automotive, the electric-vehicle maker, is experiencing a rise in its stock price after an analyst increased the price target on its shares. The analyst, Dan Ives from Wedbush, stated that Rivian is now “making a major turn towards executing on its longer-term business model.”
Ives raised his price target on Rivian (ticker: RIVN) to $30 from $25, while maintaining an Outperform rating on the stock.
After facing challenges and supply-chain issues, Rivian recently reported that it produced 13,992 electric vehicles (EVs) in the second quarter and sold 12,640 units. This is a significant increase from the 9,395 vehicles produced and 7,946 sold in the first quarter.
Investors are pleased to see this growth in production and sales, especially considering the decline in first-quarter numbers compared to the fourth quarter of 2022. If Rivian continues to perform well, it will mark the stock’s eighth consecutive session of gains.
Ives commented on Rivian’s progress, stating, “After quarters of disappointing production speed bumps, supplier issues, and what felt like an ongoing agita situation, Rivian now appears to have its production and supply-chain issues well under control with a laser focus on getting deliveries to eagerly awaiting customers.”
Rivian’s shares were up 3.8% in premarket trading on Friday, reaching $22.43. The stock has seen a 17% increase so far this year.