What happened
Shares of Rivian Automotive (RIVN 2.44%) are rising yet again today. The stock of the electric truck and van manufacturer has already risen for the past seven days. Today's jump comes as one prominent analyst updated his firm's price target. The stock was higher by 11.2% as of 10:15 a.m. ET on Friday.
So what
The stock's momentum has been driven by the company's recent second-quarter production and delivery update. After struggling with supply chain issues last year, Rivian said its deliveries increased 60% just from the first quarter to the second quarter. That has prompted Wedbush analyst Dan Ives to note that Rivian is "making a major turn toward executing on its longer-term business model" in a report shared by Barron's.
Ives maintained his buy rating on Rivian and increased his firm's price target from $25 to $30 per share in the report.
Now what
Earlier this week, Rivian announced it delivered 12,640 of its electric vehicles (EVs) in the second quarter. It also produced almost 14,000 and reiterated it is on track to produce 50,000 units for the year.
Rivian shipped nearly 16,500 of its R1T pickup trucks in the first half of 2023, making it the best-selling electric pickup in the country over that time period. CNBC reports it ranked fourth behind Tesla's Models Y and 3, and General Motors' Chevy Bolt EUV in overall EV sales, citing data from Motor Intelligence. Ives believes these results show that Rivian has overcome prior production and supply chain issues, and he notes that demand remains high for its products.
Investors should know that the stock's recent surge has brought Rivian's market cap to more than $22 billion. That is already about 5.5 times expected revenue for 2023 at the recent share price, which is still 25% below Ives' price target.
That's a high valuation, and it should be viewed as a risky and long-term investment. But recent progress has shown that Rivian could well become a successful EV manufacturer with a bright future.
