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Shares of Rivian (NASDAQ:RIVN) are rebounding higher after the electric vehicle (EV) company announced third-quarter production figures and reiterated its full-year production target of 25,000 vehicles. RIVN stock is up 10% on the news.
For the quarter, Rivian produced 7,363 vehicles at its Normal, Illinois facility, a 67% increase in production compared to Q2’s figure of 4,401 vehicles. Of those vehicles, 6,584 of them were delivered to customers. The company currently boasts three vehicles in its portfolio, the R1S, R1T and the electric delivery van, or EDV, although sales of specific vehicles were not disclosed.
In 2022, the automaker has now produced a total of 14,317 vehicles, which means that it must produce at least 10,683 vehicles during the fourth quarter to meet its goal. During March, Rivian halved its full-year production target to 25,000 vehicles from 50,000 vehicles, citing supply chain inefficiencies.
RIVN Stock: Rivian Confirms Production Target of 25,000 Vehicles
Still, its Q3 delivery figures are a welcome sight for RIVN investors, as shares have been battered this year. RBC Capital analyst Joe Spak believes the figures “should provide a boost to investor confidence.” He has a price target of $62 for the company, which was lowered from $75 last month.
Yesterday, Rivian hired Diane Lye as its first chief information officer, or CIO. Lye has several decades of professional experience and most recently served as the executive vice president and credit card divisional CIO at Capital One (NYSE:COF). Her role will be crucial as Rivian works to expand its footprint. CEO RJ Scaringe added:
“With Diane’s experience scaling global technology teams across multiple industries, including retail, technology and finance, we are extremely excited that she is joining Rivian at such a critical time in our growth.”
The company has gone through several management changes since its initial public offering, such as the appointment of Frank Klein as COO.
Still, as an early stage EV company that’s just getting its feet off the ground, skeptics abound — and rightfully so. Electrek points out Rivian has had negative gross margins on every vehicle produced as of Q2. In simpler terms, Rivian is losing money on every vehicle it produces.
During Q2, Rivian spent more than $1 billion to produce over $364 million worth of vehicles. The company still has more than $15 billion in cash on hand, but improvements must be seen over the next few quarters if RIVN stock is to be a viable investment.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.