What happened
Shares of premium electric vehicle (EV) maker Rivian Automotive (RIVN -2.21%) have raced out of the gate in October after outperforming the market in September.
On Tuesday, shares shot up 13.8%, which brought the stock's October performance to a gain of 10.3%, as shares were down on Monday. By comparison, the S&P 500 index gained 5.7% in the first two trading days of this month. Rivian stock's Tuesday pop was driven by the company's release of third-quarter production numbers and reaffirmation that it's on track to achieve its 2022 production target.
In September, Rivian stock edged up 0.6%, according to data from S&P Global Market Intelligence. That was a solid performance, as the S&P 500 dropped 9.3% last month. Rivian stock's outperformance last month is attributable to news of a partnership with German premium automaker Mercedes-Benz.
The R1T electric pickup truck. Image source: Rivian.
So what
October to date (Oct. 4)
Let's start with the catalyst for Rivian stock's double-digit pop on Tuesday, Oct. 4. On Monday after the market close, the EV maker announced that it had produced 7,363 vehicles and delivered 6,584 vehicles during the third quarter. These numbers were up 67% and 47%, respectively, from the second quarter. The company also said that it's on track to achieve its 25,000 annual production guidance.
In the second quarter, Rivian produced 4,401 vehicles and delivered 4,467 vehicles. In the first quarter, these numbers were 2,553 and 1,227, respectively. The Q3 figures bring the company's vehicle production and delivery numbers for the first nine months of 2022 to 14,317 and 12,278, respectively.
So, Rivian needs to produce nearly 10,700 vehicles in the fourth quarter to hit its full-year production target of 25,000. Given its progress from the second to the third quarter, it does seem like this target is achievable.
September
While Rivian stock rose less than 1% last month, it outperformed the broader market by about 10%. The sole reason for its outperformance was a 10.9% gain on Sept. 8 following Rivian and Mercedes-Benz announcing that they plan to create a joint venture to build a European factory that will manufacture electric vans for both companies.
Now what
If you're an investor comfortable with higher risk, Rivian stock is worth considering buying or at least putting on your watch list. The company has recently been doing a good job scaling production and has partnerships with Amazon.com and Mercedes.
Rivian hasn't yet announced a date for the release of its third-quarter results, but it will probably be about mid-November. Along with what management has to say about hitting its full-year production guidance, investors should also focus on the company's quarterly cash-burn rate relative to its cash position.
