Shares of electric vehicle (EV) maker Rivian Automotive (RIVN 3.76%) were moving higher Wednesday. Rivian shares were up by 2% as of 1:10 p.m. ET. That comes as EV juggernaut Tesla is getting closer to offering a competitor to Rivian's R1T pickup truck with its Cybertruck.
Rivian made a move this week it hopes will offset the impacts the Cybertruck may have on demand for Rivian's electric pickup truck.
Rivian offers a leasing option
Starting this week Rivian is now offering a leasing plan for some models of its R1T pickup truck. That might not seem like a major development, but considering the EV manufacturer is still in start-up mode ramping up production, it could be a sign of more good things to come.
Rivian boosted its 2023 production estimates when it reported third-quarter earnings earlier this month. It now expects to make about 54,000 units this year. Rivian's consumer offerings -- the R1T pickup and R1S SUV -- both start at selling prices of between $70,000 and $80,000. The new leasing option could spur further demand and also may signal the company has confidence that its production rate will continue to ramp up.
A unique EV lineup
Rivian has been in a niche market with its EV offerings. In addition to its consumer trucks, it makes electric commercial delivery vans. That makes it unique among EV start-up companies. Its most recent production update has had investors boosting Rivian's share price as other EV makers are seeing slowing demand. Rivian stock has moved about 15% higher over the last three weeks.
That may be because investors see more short-term upside for Rivian shares than other EV names. It has successfully been ramping up production this year and is about to break ground on a second manufacturing facility that it will use to launch a new, lower-priced vehicle.
Offering EV buyers an easier way to purchase its trucks may help to hold off some potential competition from Tesla's Cybertruck. But more important for Rivian investors is the continued growth in production and the successful start-up of its new plant. That's what shareholders should continue to monitor closely.
