Rivian Automotive experienced a significant boost in its stock price on Friday, as shares soared following the release of impressive fourth-quarter delivery numbers that surpass Wall Street’s expectations. The electric vehicle manufacturer successfully delivered a total of 14,183 units in the last quarter of the year, which was an increase from 13,972 units during the same period last year.
This achievement not only exceeded analysts' consensus estimates, which had anticipated deliveries of around 13,000 units but also marked a robust growth trajectory for the company. Additionally, Rivian's deliveries rose from 10,018 vehicles distributed in the third quarter, reinforcing the company's commitment to ramping up production. As a result of these strong figures, Rivian's stock climbed an impressive 24% during trading on Friday.
Despite the good news surrounding deliveries, Rivian produced fewer units at its manufacturing facility in Illinois, recording 12,727 vehicles, significantly lower than the 17,541 units produced during the previous year’s fourth quarter. The production fell short when compared to the 13,157 units manufactured in the previous quarter. For the entire year of 2024, Rivian manufactured a total of 49,476 vehicles, just surpassing its guidance range of 47,000 to 49,000 units, yet this figure represented a decline compared to the previous year’s total of 57,232 vehicles.
In terms of customer deliveries, Rivian managed to deliver 51,579 vehicles, marking a slight increase from 50,122 vehicles the prior year. Initially, the company had projected 2024 deliveries to be between 50,500 and 52,000 units, indicating its cautious optimism. Earlier in October, Rivian had revised downward its full-year production guidance due to a shortage of a critical component affecting both its R1 and RCV platforms.
However, the latest updates suggest that this shortage has become less of a hindrance in their manufacturing processes. Truist analysts noted that with the supply/component issue behind, Rivian's focus now shifts towards executing its strategy for profitability. They predict only modest year-over-year growth in 2025, anticipating the planned launch of Rivian's R2 model in Normal, Illinois, set for 2026. Investors are eagerly awaiting Rivian’s detailed fourth-quarter results, which are scheduled to be announced on February 20.
The recent upswing in Rivian's performance comes on the heels of rival Tesla's report, revealing a year-over-year decline in vehicle deliveries. Tesla posted numbers that did not meet analysts' forecasts for the fourth quarter, leading to a 2.5% increase in their stock value during Friday trading, even after a decline of 6.1% in the prior session. With Rivian's continued commitment to innovation and delivery growth, the market watches closely to see how these developments will affect its long-term trajectory in the competitive electric vehicle landscape..