The shares of electric vehicle manufacturer Rivian (RIVN) have rose nearly 7% at the start of trading on Wednesday before paring some of the gains, extending Monday's 17% jump after the company beat second-quarter delivery estimates.
KEY POINTS
- Rivian manufactured 13,933 vehicles and delivered 12,640 units in Q2 2023, more than analysts expected.
- The electric vehicle maker said it is on track to produce 50,000 electric vehicles in 2023 and aims to record a 100% increase in production by the end of 2023.
- Amazon said this week that it has started delivering packages using Rivian electric vans in Europe.
Rivian made 13,992 vehicles in the second quarter of 2023 and said it was on track to record a 100% increase in vehicle production from 2022 as pressures on the production line continue. Supply is dwindling. The company aims to produce 50,000 vehicles in 2023, up from 24,377 in 2022.
On Monday, Amazon also announced that more than 300 Rivian electric vans will hit the road in Germany to deliver customer packages. Amazon has announced plans to invest more than one billion euros ($1.09 billion) to electrify its European transportation network and reduce carbon emissions.
Amazon (AMZN) began delivering its packages using Rivian electric vans in July 2022 after investing $700 million in Rivian in 2019. Under the deal, the electric car maker will supply 100,000 vehicles to the trading giant electronics by 2030. Amazon said it aims to reduce its carbon footprint through the partnership and achieve zero carbon by 2040.
In the first quarter, Rivian produced 9,395 vehicles and sold 7,946 units. The company posted a net loss of $1.3 billion, compared to a loss of $1.5 billion in the same period a year ago. Rivian will release its second quarter results on August 8.
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Source: investopedia.com
