By Chibuike Oguh
NEW YORK (Reuters) – Shares of Rivian Automotive jumped more than 15% on Friday, extending gains for the eighth straight session, after the electric vehicle (EV) maker reported better-than-expected quarterly deliveries.
Rivian said Monday it delivered 12,640 vehicles in the second quarter on the back of steady customer demand, beating market estimates. The result was in line with market leader Tesla Inc, which reported record quarterly vehicle deliveries on Sunday fueled by incentives such as price cuts and U.S. federal credits.
Shares of several electric vehicle makers have risen since last week on market expectations of strong quarterly delivery reports.
Several analysts raised their price targets for Rivian shares, as the electric vehicle maker was seen as having overcome production and supply chain issues that were limiting deliveries.
Rivian’s stock soared to $24.99 on Friday, a 2023 high. It has gained about 80% over the past eight sessions and is up about 33% year-to-date.
“The Street has seen further evidence that Rivian’s long-awaited success may be underway and we believe more good news is on the horizon as we look to the next 12-18 months with Rivian,” Wedbush analysts said in a statement. note to investors on raising their price target to $30 from $25.
Twenty-three Wall Street brokerages covering Rivian on average recommend buying the stock and set a median price target of $24, according to Refinitiv data.
Rivian shares hit an intraday high of around $179 days after the company’s blockbuster IPO in November 2021, but spat as it struggled to deliver its electric vehicles, including pickup trucks. R1T and R1S SUVs.
Rivian, based in Irvine, Calif., said it was focused on ramping up production and reaffirmed its forecast to make 50,000 cars this year despite laying off 6% of its 14,000 employees.
(Reporting by Chibuike Oguh in New York; Editing by Richard Chang)