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Rivian Automotive (NASDAQ:RIVN) stock surges as strong deliveries fuel investor optimism. The company exceeded analysts’ delivery expectations for the quarter, showcasing continued growth in the electric vehicle market.

RIVN stock has experienced a significant surge driven by retail investors, with a 54% increase over the past five sessions and an 81% gain for the month. Analysts, including Dan Ives from Wedbush Securities, believe that Rivian has overcome previous execution challenges and is now on track with its business model.

Stronger deliveries in the second quarter and ongoing demand for the company’s unique EV models have contributed to this positive outlook.

Wedbush maintains an “outperform” rating on RIVN stock and has raised its price target to $30, expressing confidence in Rivian’s ability to meet or exceed delivery targets.

Recent News on Rivian

Rivian Automotive stock is on the rise after surpassing delivery expectations in the second quarter and beginning European van deliveries to Amazon (NASDAQ:AMZN). The company delivered 12,640 vehicles, exceeding analysts’ projected deliveries of 11,300.

As a result, shares experienced a 17.4% increase in limited trading, followed by an additional 7.7% increase over the holiday weekend.

Rivian, backed by Ford and Amazon, experienced a successful IPO, with its stock trading at around $130 per share.

Ford sold most of its stake in Rivian for a profit and currently holds a small percentage. Amazon, which initially ordered 100,000 electric delivery vans from Rivian, recently reduced its order to 10,000 vehicles for this year.

Notably, Rivian expressed interest in ending the exclusivity agreement on the vans, while Amazon attributed the change to general cost-saving measures.

Rivian Will Offer More In the Coming Months

Rivian Automotive will introduce a more affordable SUV option, the R2, with a price range of $40,000 to $60,000. This offers a more budget-friendly choice compared to their higher-priced R1 model.

Chief Design Officer Jeff Hammoud emphasized that the R2 will have a unique design and won’t simply be a cheaper version of the R1.

Rivian’s Chief Marketing Officer, McDonough, confirmed that the upcoming R2 model will be more affordable than the R1T and R1S, with a price range of $40,000 to $60,000.

She emphasized the R2 will maintain the adventurous spirit of the R1T while building on the brand’s ethos. McDonough also highlighted the user interface and experience as an area where the R2 can distinguish itself.

What Now?

Rivian’s expansion into Europe through its electric delivery vehicle partnership with Amazon reassures investors about the company’s delivery capabilities.

The successful rollout dispels concerns about the partnership’s viability and signals a potential bullish trend for Rivian’s EV stock, especially with the R1T pickup truck gaining popularity in the U.S. market.

On the date of publication, Chris MacDonald has a position in AMZN. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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