Why EV-Maker Rivian Automotive Shares Are Climbing

Rivian Automotive Inc. RIVN shares are moving Thursday after Stifel initiated coverage on the stock with a Buy rating and $23 price target.

What To Know:

Stifel analyst Stephen Gengaro initiated coverage on Rivian Automotive with a Buy rating and announced a price target of $23.

Gengaro mentions Rivian's upcoming R2 line to be launched from the company's new manufacturing facility, which will boast an annual production capacity of 400,000 units. The R2 platform will address the largest vehicle segment in the U.S. which is currently dominated by Tesla in the EV sector.

Gengaro says other positives to Rivian's story include brand awareness, driven by the R1S and R1T, and a recent 100,000-EDV agreement with Amazon. The analyst also sees multiple factors driving margin expansion in 2024 and beyond, including pricing and higher volumes.  

Rivian's CFO, Claire McDonough, recently shared new information at the Barclays 2023 Global Automotive & Mobility Tech Conference regarding the company's development of a cheaper and simplified battery pack structure to be used in future R1 EVs.

McDonough also said in the interview that Rivian expects to become gross margin positive in 2024.

Rivian is one the top trending tickers on Yahoo Finance, and shares have risen more than 10% over the past five days.

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RIVN Price Action: According to Benzinga Pro, Rivian Automotive shares are up 2.29% at $18.80 at the time of publication.

Image: Courtesy of Rivian Automotive, Inc.