Rivian Stock Jumps To 3-Week High Premarket: What's Going On?

Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) rallied in premarket trading on Wednesday after the electric vehicle startup reported above-consensus revenue and bottom-line results for the third quarter.

The company reported a non-GAAP loss of $1.19 per share, narrower than the year-ago loss of $1.57 per share. Revenue climbed 150% to $1.34 billion. Both metrics exceeded the consensus estimates that called for a loss per share of $1.32 and revenue of $1.327 billion.

The company also raised its 2023 production guidance from 52,000 units to 54,000 units. On the earnings call, CEO RJ Scaringe sounded upbeat about the company’s next-gen R2 platform, which would be used to build its more affordable vehicles.

Also on a positive note, Rivian said it has ended its exclusivity agreement with Amazon to supply its electric delivery vans. This opens the possibility of striking deals with more customers.

Following the results, Needham analyst Chris Pierce reiterated a Buy rating on Rivian stock and reduced the price target from $31 to $25. The analyst attributed the reduction to the lowering of the target multiple to better reflect the current interest rate environment and the firm’s lower 2024 delivery estimates.

“We continue to see RIVN as deserving of both a longer-term view and a premium multiple as they increasingly look like a winner in the ICE to EV transition, with solid demand metrics, pricing power, and improving margins as peers struggle in all three categories,” he said.

In premarket trading, Rivian rallied 9.07% to $19, according to Benzinga Pro data.

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