In the dynamic landscape of electric vehicles (EVs), Rivian Automotive’s first-quarter performance in 2024 showcased robust growth, with the company delivering 13,588 vehicles and producing 13,980 units. Despite these positive metrics aligning with the company’s trajectory to achieve its 2024 targets, Rivian’s stock experienced a decline, reflecting broader market trends and potential concerns among investors.
The delivery figures marked a significant uptick, representing a notable 70% increase year over year from the 7,946 units delivered in the corresponding period of 2023. This growth surpassed analysts’ expectations, as Wall Street had anticipated only 13,000 units according to FactSet data. Baird analyst Ben Kallo characterized Rivian’s first-quarter delivery numbers as a “beat,” reaffirming a Buy rating on the stock with a price target of $23.
While Rivian’s production also showed robust expansion, rising by approximately 49% year over year, there was a sequential decline from the previous quarter, where the company produced 17,541 units. However, this decline was anticipated, as Rivian’s management had indicated that the first-quarter production and delivery results aligned with their expectations. Furthermore, management reiterated their guidance for annual production of 57,000 total vehicles for the full year 2024.
Despite meeting expectations, Rivian’s stock faced a 4.3% decline in early trading, reaching $10.62. This downturn was partly attributed to broader market trends, with the S&P 500 and Nasdaq Composite experiencing declines of 1.1% and 1.5%, respectively, amid rising bond yields.
In addition to market dynamics, Tesla’s performance in the first quarter also impacted investor sentiment towards EV stocks. Tesla’s stock witnessed a 5.6% decline after delivering 386,810 units, which fell short of Wall Street’s average estimate of about 425,000 units. Given Tesla’s position as the most valuable car company and EV maker globally, its performance often influences the broader EV industry, including companies like Rivian.
Rivian’s stock had already experienced a significant decline of approximately 53% year-to-date, primarily driven by concerns over slowing demand growth for EVs and a slower-than-expected production ramp-up. These factors contributed to investor apprehension and volatility in the stock price, despite the company’s positive operational performance.