July 3 (Reuters) – Rivian Automotive (RIVN.O) exceeded market expectations for second-quarter deliveries due to increased production and steady demand for its electric vehicles, resulting in a more than 14% surge in the company’s shares on Monday. The positive delivery numbers for the quarter indicate a turnaround for the EV startup, which has faced challenges in scaling up production amidst supply chain disruptions and tough competition from Tesla (TSLA.O), the market leader. “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,” commented Needham analyst Chris Pierce. Rivian, known for its R1T pickup trucks and R1S SUVs, delivered 12,640 vehicles in the second quarter, surpassing Visible Alpha’s estimate of 11,000 vehicles. The company manufactured 13,992 vehicles at its facility in Normal, Illinois, which is 4,597 more than the previous quarter. As traditional auto giants make progress in the race for market share, doubts have arisen about the ability of EV players to stay on track until the end. However, Danni Hewson, head of financial analysis at AJ Bell, believes that Rivian’s figures suggest the company has what it takes to endure. Rivian’s production and delivery figures were released just a day after Tesla reported record deliveries in the second quarter, and some analysts attribute Rivian’s success to its focus on developing its own drive unit to reduce costs and reliance on suppliers. In May, Rivian posted a smaller loss in the first quarter, and the company’s finance chief stated last month that demand is expected to remain stable through 2023. Reporting by Chavi Mehta in Bengaluru; Editing by Vinay Dwivedi and Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.Chavi MehtaThomson ReutersChavi reports on U.S. technology companies, including semiconductor firms.
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