Electric vehicle company Rivian Automotive (NASDAQ:RIVN) recently reported fourth-quarter financial results.

The results included a look back at key 2023 production and delivery milestones as well as guidance that the company will produce 57,000 vehicles in 2024. Here's a look at how leasing could impact the company's growth.

What Happened: Rivian started offering leasing for its R1S SUV in January, which could be a major catalyst for the company.

Citing data from a new Experian financing report, Electrek highlights that the R1S was the fifth-bestselling electric vehicle in the United States in the fourth quarter. Here were the top five by market share of electric vehicles.

Tesla Model Y: 31.9%

Tesla Model 3: 17.6%

VW ID.4: 3.9%

Mustang Mach-E: 3.4%

R1S: 3.4%

The R1S was also the seventh-bestselling electric vehicle in the United States for all of 2023.

Related Link: Rivian Production Plant Puts ‘Ceiling’ On Stock, Analyst Says In Downgrade

The percentage of electric vehicles leased in 2022 was 9.8%, which means that 2023 saw a significant increase in leasing activity as more models were offered via leases and not just through cash or loan sales.

Of the top-five bestselling electric vehicles in the fourth quarter, the R1S saw the lowest percentage of vehicles leased at 0.94%. Here are the percentages of the top four EVs leased in the fourth quarter.

Model Y: 9%

Model 3: 14%

ID.4: 75%

Mach-E: 39%

Given these percentages, Rivian’s R1S sales might experience a notable increase with the introduction of a leasing option.

This potential catalyst coincides with the possible volatility in Rivian shares leading up to the unveiling of the R2 mid-size SUV on March 7.

RIVN Price Action: Rivian shares traded at $11.36 versus a 52-week trading range of $10.05 to $28.06. Shares of the EV company are down 28% over the last year.

Read Next: Gene Munster Suggests Apple Acquire Rivian Following Surprising Cancellation Of Apple Car Project

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