Shares of Rivian Automotive (RIVN -0.78%) jumped on Wednesday after the electric truck maker announced its much-awaited vehicle production and delivery figures. By the close of trading, Rivian's stock price had gone up 10.4%.
In Rivian's report, it said that it manufactured 4,401 electric vehicles (EVs) at its Illinois plant in the second quarter. It also delivered 4,467 electric vehicles during the period. Those figures represented growth of 72% and 264%, respectively, compared to the first quarter.
Rivian also said that it is on schedule to achieve its goal of producing 25,000 vehicles in 2022. The news came as a relief to investors. Supply chain shortages have snarled Rivian's manufacturing operations in recent months. Shareholders were no doubt pleased that the company has been able to reiterate its annual production target despite these challenges.
With climate change and sustainability initiatives becoming more pressing issues for both people and governments across the world, the automotive industry is speeding up its shift from traditional internal combustion engines to battery-powered vehicles. The conflict in Europe, which has driven oil and gas prices sharply higher in recent months, is only serving to accelerate this global megatrend.
Rivian's pickup trucks and SUVs have proven popular with consumers. The company also has an order for a whopping 100,000 delivery vans from e-commerce powerhouse Amazon.com. Rivian's biggest challenge so far has been being able to produce enough vehicles to meet the booming demand for its EVs.
Thus, stock owners are likely to cheer any positive developments regarding Rivian's manufacturing expansion plans -- and the encouraging production metrics it released today led many investors to bid up the company's stock price.