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Rivian Automotive (NASDAQ:RIVN) stock rose nearly 7% overnight after posting better-than-expected revenue and earnings. It also increased its 2023 production target by 2,000 vehicles.
The electric vehicle (EV) maker lost $1.37 billion, $1.44 per share, on revenue of $1.34 billion during the quarter. There was an operating cash flow loss of $3.6 billion, but it ended the quarter with $13.8 billion in cash.
Rivian stock opened today at $18.50, a market capitalization of over $19 billion on an estimated 2023 revenue of $3 billion. As of early morning trading, RIVN stock has pared down its overnight gains somewhat and is sitting at about 1% in the green.
Why Rivian Rose
Rivian is best known for its R1T truck, which continues to sell well despite being priced at over $70,000. It has financial stability thanks to early backing from Amazon (NASDAQ:AMZN), which placed an order for 100,000 electric vans back in 2019.
Those vans are starting to roll out, but Rivian said it will now sell them to other companies as well, ending the exclusivity arrangement. Amazon still owns a 17% stake in Rivian.
The production hike buoyed analysts, an indication demand for Rivian products remains strong even while the EV market itself is troubled. Rivian made 15,564 vehicles during the third quarter, up 23% from the prior quarter.
Rivian is currently producing its products in Normal, Illinois. But it’s building a large factory outside Social Circle, Georgia, with $1.5 billion in state subsidies. The factory, along I-20, will be supplied by a battery plant to the north along I-85, east of Atlanta.
The numbers caused analysts to breathe a sigh of relief. There are 21 analysts following Rivian at Tipranks, and 14 have it on their buy lists.
Since its last earnings report three months ago, RIVN stock has gone down 28%. For all of 2023, it’s only down slightly, assuming it keeps its overnight gains during the trading day.
RIVN Stock: What Happens Next?
Rivian has the momentum among America’s EV start-ups. It just needs to get costs down by the time the Georgia factory opens in 2026.
As of this writing, Dana Blankenhorn had a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.