Rivian Automotive, the electric vehicle (EV) manufacturer, has experienced a remarkable turnaround in its stock performance after a period of decline. Since its record-breaking $11.9 billion initial public offering (IPO) in November 2021, Rivian stock (RIVN) had been on a downward trajectory, hitting a low of $12.04 on April 26, 2023. However, recent developments have given the company a much-needed boost.
Rivian Analyst stated that bad times are now behind the company
The turning point came in early July when Rivian announced its outstanding performance in the second quarter of 2023, marking the best quarter in the company’s history. With production figures of 13,992 vehicles and 12,640 deliveries, Rivian reaffirmed its annual production guidance of 50,000 units. These positive results have propelled the stock to a significant increase of almost 90% over the past nine trading sessions. On Monday, Rivian closed at $25.51, nearly double the closing price of $13.45 on June 26.
The reaffirmation of delivery goals has also contributed to increased investor confidence, leading to an upgrade in the price target by Wedbush Securities from $25 to $30. Analyst Dan Ives expressed optimism, stating that Rivian has finally turned the corner and that the worst is likely behind them.
While the current stock price remains far below its IPO high, the recent growth indicates a positive trend for Rivian. The surge in stock value can also be attributed in part to a short squeeze, where investors who had bet on the stock price falling are now forced to buy shares to cover their positions. Short interest on Rivian currently sits at 12.34% of the float, leading to short covering as the stock price rises.
Options trading on Rivian has also surged, with 831,000 contracts traded on Monday, twice the average daily volume. Investors have been purchasing “super short-dated calls,” driving further upward momentum for Rivian shares. If the company continues to deliver on its promises and navigate the EV market, stakeholders will most likely monitor its progress and the potential for further stock value appreciation. The company is also in talks of manufacturing an electric bike, we’ll see how that goes as well.
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(Via)
