Wedbush analyst Dan Ives raised Friday Rivian‘s price target by 33% to $40 while keeping an Outperform rating on the shares representing an upside potential of 25% based on the last closing price.
The analyst said Rivian’s order book for its trucks “looks impressive” expecting strong demand in 2023. At the same time, the company begins “to gain some Street credibility as it navigates the difficult supply chain environment incrementally better, which they ultimately see leading to an improving financial profile for the story into 2023,” Street Insider initially reported.
“We believe Rivian from a core engineering and design perspective along with the Amazon commercial relationship has the potential to be a major EV stalwart over the next decade. However, for that to happen they need to start delivering models to customers and stop the excuses and we like what we see so far,” the analyst wrote.
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On Thursday, Goldman Sachs analyst Mark Delaney also commented on the company’s production and delivery results saying the supply chain challenges — particularly for semiconductors — still affect Rivian and the whole industry but expects “a gradual improvement” during the summer.
On Wednesday, the company reported 4,401 vehicles produced at its manufacturing facility in Normal (Illinois) during the second quarter of 2022 and the delivery of 4,467 vehicles. The electric vehicle maker said the numbers are “in line with the company’s expectations, and it believes it is on track to deliver on the 25,000 annual production guidance previously provided.
Recently, Rivian announced that opened three fast-charging sites this week in Colorado and California, “the first deployments in its nationwide Rivian Adventure Network”.
In mid-June, the company unveiled its plans for a large-scale wind turbine at its Normal manufacturing campus to provide clean energy enabling new R1 vehicles to be powered by renewables for their first charge. Earlier this year, Rivian installed a 783-kilowatt solar canopy that is scheduled to begin generating electricity later this summer.
The wind project aligns with Rivian’s strategy of adding renewable resources to parts of the country that need them most Illinois’ grid is powered by 11% renewables and aims to reach net-zero carbon emissions by 2040, 10 years ahead of the Paris Agreement, the company stated.