STORY: Shares of electric vehicle maker Rivian surged more than 20% Friday morning after it surpassed analysts’ expectations for fourth-quarter deliveries and said its production was no longer constrained by a component shortage.
The low supply of the part used in its R1 SUV and R1T pickups, as well as its delivery vans, started in the third quarter and forced Rivian to slash its annual production target in October.
Deliveries jumped 42% jump from the previous quarter and hit their highest level in more than a year.
For 2024, production came in at 49,476 vehicles, down about 13% from a year earlier but above the company’s lowered target of between 47,000 and 49,000 units.
One analyst said Rivian benefitted from improved production, coupled with its focused product strategy.
Thursday larger rival Tesla reported its first fall in yearly deliveries weighed down by the EV pioneer’s aging lineup.
Rivian has cut costs sharply by renegotiating supplier contracts and revamping its manufacturing processes to try to become profitable.
It also closed a $5.8 billion investment from German automaker Volkswagen as part of their technology joint venture.
Rivian reports fourth quarter results next month.
