Rivien (RIVN) on Thursday confirmed its full-year production forecast and said second-quarter deliveries would beat analysts’ expectations, a day after shares jumped on news of its joint venture with Volkswagen (VWAG), RIVN stock fell on Thursday.
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At Rivian’s investor day on Thursday, the EV startup said it still plans to produce 57,000 vehicles in 2024. It expects second-quarter deliveries to total between 13,000 and 13,300. Analysts expect second-quarter deliveries of 12,000, according to FactSet.
Rivian will release official second-quarter shipping and production numbers on July 2.
The company also said Thursday that it has delivered between 26,600 and 26,900 vehicles so far this year and is producing 23,100 to 23,300 units.
Rivian also affirmed its goal of positive gross profit per vehicle by the fourth quarter. In the first quarter, Rivian lost $38,784 per vehicle delivered.
The startup said Thursday that its path to gross profit per delivered unit is primarily through reducing material costs, as well as regulatory credits and other efforts.
Volkswagen offer
On Tuesday night, Rivian announced a partnership with Volkswagen. The $5 billion plan involves the global auto giant investing in the electric vehicle startup and leveraging some of its engineering and designs.
The partnership will focus on software as well as electrical architecture design and development, according to Rivian executives. The joint venture does not currently include battery technology, propulsion platforms, high-voltage systems or autonomous driving.
Rivian Chief Executive RJ Scaringe said Tuesday the joint venture would have two co-chief executives. Rivian will appoint the technical management and Volkswagen will appoint the co-CEO in charge of operations.
Volkswagen and Rivian will continue to independently manage and operate their respective automotive businesses, according to Scaringe.
The companies expect the deal to total $5 billion. This includes an initial investment of $1 billion by Volkswagen and then an additional investment of $4 billion.
Rivian Stock Performance
RIVN shares fell 1.8% to 14.48 during Thursday market trading after climbing 23.2%, reaching an intraday high of 16.35 on Wednesday.
Rivian shares jumped 8.6% to 11.96 on Tuesday. Scaringe sold 71,429 shares of Rivian on Tuesday, worth $803,576.25, according to regulatory filings.
This was the second time Scaringe sold Rivian shares this month, after selling 71,429 shares for a market value of $820,883.50 on June 10.
Prior to Wednesday’s session, RIVN shares had fallen 50% in 2024, falling back below their 200-day price. The stock is trading along its 50-day moving average and started Wednesday about 85% below its IPO price of $78, according to MarketSurge Analysis.
Rivian Stock Ranks No. 8 on IBD Leaderboard Automotive Manufacturers Industry Group. RIVN has a 40 Composite note out of 99. Additionally, the title has a 35 Relative Strength Rating and his EPS rating is 30 out of 99.
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