EV maker Rivian appears as “one of the core EV players over the next decade,” the information came from Wedbush Analyst Dan Ives. Rivian analyst anticipations the second quarter, delivering 12,640 vehicles which are up by 50% with respect to the previous quarter.
Also, the production continues to ramp up with approx 14K EVs developed during the tenure, The Rivian’s CEO RJ Scaringe underlines the company’s maximize profitability as well as capital efficiency.
Since Rivian creates more vehicles, the company is improving its efficiency to optimize plant overhead and manufacturing operations. Additionally with the addition of in-house components like its new Enduro drive trains and LFP battery packs. The company tends to reduce the costs of each of its vehicles produced.
Considering these things into account, Rivian’s gross profit per vehicle improved by $35,000 in Q2 compared to the first quarter. On the other hand, the gross loss currently is (-$32,595) as compared to (-$67,329) in Q1 and (-$157,000) last year.
Moving ahead, with the improvement in Q2, Rivian enhanced its annual production guidance by 2,000. This is intended for the company’s new goal of building 52,000 vehicles by the end of the year.
Rivian is seen as a core EV player
The enhancement was enough for Wedbush Analyst Dan Ives, who has been known for his Tesla coverage. To convey his feedback for Rivian, he added “one of the core EV players over the next decade.”
Ives stated that the EV maker took “another step in the right direction” after releasing second-quarter results this week. He added that “demand looks strong” and “visibility is improving into 2024.”
With Rivian surpassing delivery and production estimates in July, the experts mounted his price target from $25 to $30 per share. In an exclusive interview with Bloomberg TV, CEO RJ Scaringe, said, “The focus of the business is incredibly dialed in on driving up production and driving down cost,” adding, “We have a very clear line of sight” to profitability.
