Shares of Rivian Automotive (RIVN 0.27%) continued their recent move higher today. In just the last five days, the shares of the electric-vehicle start-up have soared about 27%. The stock jumped another 5% today, before paring some of that gain. As of 12:05 p.m. ET on Friday, it was still up 3.4% for the day.
The big gains came after the company updated investors with second-quarter production results and reaffirmed its plan to produce 25,000 vehicles this year. Today's jump came after Wedbush Securities analyst Dan Ives boosted his price target on the stock.
Ives pushed his price estimate on the stock to $40 per share, up from $30, Barron's reported. He maintained his buy rating, with the new price target representing a 26.5% gain from Thursday's closing price.
Earlier this year, supply chain disruptions forced Rivian to lower its 2022 production guidance from 40,000 units to 25,000. In its recent update, the company said it produced 4,401 electric trucks in the second quarter, nearly doubling its cumulative total since beginning production late last year.
The ramp-up in volume puts the company on track to achieve its revised production goal, and investors reacted positively. Ives believes the lack of semiconductor availability that has hit many global automakers will become less of an issue in coming months.
This should lead to a continued ramp-up of production. The company currently has the ability to produce up to 50,000 vehicles per year at its Normal, Illinois, factory. The show of support from a popular analyst has Rivian stock continuing its march upward today.