Rivian Automotive delivered 4,467 vehicles in the second quarter, nearly four times more than the previous quarter, as the electric-automaker benefits from ramping up production and strong demand.
The company also said on Wednesday that production was on track to meet its annual production target of 25,000 units after producing 4,401 vehicles, up 72% sequentially in the quarter.
The upbeat data sent Rivian shares nearly 13% higher, providing some relief to the stock, which has lost nearly three-quarters of its value in this year’s equity selloff.
“The most important thing for the stock right now is to give investors confidence in its 2022 forecast,” said Redburn analyst Charles Coldicott.
While widespread shifts to electric vehicles and rising fuel prices due to the Russo-Ukraine war have fueled demand for Rivian’s products, the company has struggled to boost production due to the lack of an industry-wide supply chain.
In March, it halved its planned production target for 2022.
“Rivian will need to operate at much higher utilization rates in the second half of 2022 to hit its guidance,” said CFRA research analyst Garrett Nelson.
The company has a factory in Normal, Ill., where it produces the R1S sport utility vehicle, the R1T pickup truck, and a delivery van for investor and customer Amazon. The online retail giant holds about 18% stake in Rivian.
The Illinois factory has an annual capacity of 150,000 vehicles and the company has said it intends to increase this to 200,000 by 2023.
Rivian also plans to open its second plant near Atlanta in 2025 as it expects demand for its vehicles to increase.