Shares of electric vehicle (EV) maker Rivian Automotive (NASDAQ:RIVN) were soaring last week after the company reported strong production numbers for the second quarter. For the period ending June 30, Rivian said it produced 13,992 vehicles and delivered 12,640 of them. It also reiterated its guidance to produce 50,000 vehicles this year.
It’s an encouraging development for Rivian as analysts were only expecting deliveries to top 11,000. Demonstrating strong demand especially amid inflation and EV maker Tesla (NASDAQ:TSLA) announcing price cuts has led to a wave of bullishness for Rivian’s stock. On Friday, the stock jumped to over $24 a share, hitting levels it hasn’t been at since December.
Multiple analysts upgraded the stock last week in light of the delivery and production news, with price targets ranging from $18 to $30. That’s not huge upside for the stock but depending on how Rivian performs in its next earnings report, there could be more upgrades coming.
The problem with Rivian is that it remains grossly unprofitable, accumulating net losses of $6.8 billion over the trailing 12 months. If the company can show improvement in the bottom line while also generating good growth, that could be enough to send its shares higher.
Although it has been doing well this year, Rivian’s stock is still well below its 52-week high of $40.86. It may not be too late to buy the stock but you’re also taking on some risk with it as this can be an incredibly volatile investment to hang on to.