Rivian's production growth: a stock opportunity or a warning for investors?
Electric car giant Rivian Automotive recently reported fourth quarter vehicle production growth. However, the stock responded with a drop after the company delivered fewer vehicles than in the previous period. How are investors reacting to the news and what can we expect from Rivian in the future?
Shares of Rivian Automotive $RIVN+1.4% saw a decline of about 10% after the company reported that it increased production of vehicles in the fourth quarter but delivered fewer vehicles than in the previous period. From October to December, 13,972 vehicles were delivered, down 10.2% from the third quarter of 2023.
Shares of $RIVN+1.4% reacted to the news with a decline, closing Tuesday at $21.10 per share, down 10.1%. This decline is in contrast to last year, when the company's stock was up approximately 27%.
Rivian's production numbers, however, are interesting. In the fourth quarter, 17,541 EVs were produced, up from the previous quarter. The total number of vehicles produced for the full year is 57,232, exceeding initial expectations of 54,000 vehicles for 2023.
Rivian Automotive's results offer a glimpse into what's currently happening in the EV market and show the challenges the company may face in the coming months. Investors will definitely be focused on the company's results, which will be announced on February 21. The results will show and indicate how they may affect Rivian's future in the EV market.
In contrast to Rivian, EV leaderTesla recently beat Wall Street's expectations for fourth quarter deliveries, and this news could impact the rivalry between Rivian and Tesla $TSLA+1.2%.
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