About Rivian

Founded in 2009, Rivian Automotive, Inc., is an American electric vehicle manufacturer and automotive technology company. It specializes in producing electric SUVs and pickup trucks on a versatile skateboard platform that can be utilized by other companies or future vehicles. As part of its collaboration with Amazon, Rivian is also manufacturing electric delivery vans (Rivian EDV). The company commenced deliveries of its R1T pickup truck in late 2021 and has ambitious plans to create an exclusive charging network across the United States and Canada by the end of 2023. Headquartered in Irvine, California, Rivian operates its manufacturing plant in Normal, Illinois, and has several other facilities in various locations, including Palo Alto, California; Carson, California; Plymouth, Michigan; Vancouver, British Columbia; Wittmann, Arizona; and Woking, England. Additionally, Rivian is considering building a new factory worth 5 billion USD in Georgia. Since its IPO in November 2021, Rivian has successfully raised more than 13.5 billion USD in financing.

Amazon has first Rivian delivery vans in Europe

Amazon, the renowned e-commerce giant, announced that it will introduce its initial fleet of European vans from Rivian in Germany within the next few weeks. This move is a part of Amazon's long-term strategy to electrify its transportation network. In the Munich, Berlin, and Dusseldorf regions, 300 electric vans will be deployed as part of a substantial 100,000-vehicle order made from Rivian in 2019, where Amazon holds the largest stake in the company. To adapt to the narrower streets in Europe's cities, Rivian and Amazon have developed a specially designed, smaller van compared to the ones used in the United States. Amazon has committed more than 1 billion EUR to electrify its European fleet, with 400 million euros dedicated to Germany. The company has already initiated the rollout of Rivian vans in the United States, and it currently operates over 3,000 vans delivering packages in more than 500 cities and regions across the country. Amazon's goal is to expand its fleet globally and have 100,000 Rivian vehicles by 2030. [1]

2Q delivery estimates beat

Rivian Automotive experienced a significant boost in its stock price, surging nearly 14% * during early trading on Monday. The company outperformed market expectations by delivering 12,640 vehicles in the second quarter, marking a remarkable 59% increase compared to the previous year's deliveries.  Additionally, Rivian's manufacturing plant in Normal, Illinois, produced 13,992 vehicles during the same period, showing a substantial increase of 4,597 vehicles over the first quarter. Despite facing supply chain challenges, Rivian reaffirmed its target of producing 50,000 units annually. The company expressed confidence in meeting this goal, stating that the recent figures align with its expectations. Furthermore, Rivian revealed that it will release its financial results for the second quarter of 2023 on August 8th, after the market closes. [2]

Rivian’s stock overview

Stocks came to the market in November 2021 and the price was on the all-time high at 130 USD. As mentioned in the beginning, Rivian have had a rough start. And by that we meant exactly the fact, that since coming to the market, stocks fell for more than 84%. However, not all is that bad. After the news, that they have beaten quarterly expectations and news about expanding to Europe – through Amazon, stocks rose for around 20%. If it will continue to keep the momentum and will at some point return to the initial price, it could be a nice stock to keep an eye on and potentially buy. [1]

Movement of Rivian stocks since coming to the market. (Source: Google Finance) *

Conclusion

Even though Rivian have had a rough start, it just might deserve a second chance. If we put aside the fall it has performed, and we check from the positive perspective, it shows that their stocks have a very nice space for potential movement. Of course, time will show if our predictions are correct. Nevertheless, company does not show any signs of giving up just yet.

Adam Austera, chief analyst at Ozios

* Past performance is no guarantee of future results.

[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements

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[1] https://www.reuters.com/sustainability/amazon-rolls-out-first-european-rivian-vans-germany-2023-07-03/

[2]https://www.investing.com/news/stock-market-news/rivian-jumps-14-after-smashing-2q-delivery-estimates-432SI-3118830.