RIVN Stock Alert: Rivian Confirms 2024 Production Forecast at Investor Day

Rivian (NASDAQ:RIVN) has had an excellent week, even if the momentum from yesterday’s news is slowly fading. Shares rose sharply yesterday after Volkswagen (OTCQB:VWAG) announced plans to gradually invest heavily in the electric truck maker. This sparked a rally in many other electric vehicle makers, but today RIVN stock is making headlines with another positive update.

Today was Rivian’s annual investor day, and on that day Rivian reiterated its production guidance for the year and signaled that it expects a strong performance for the remainder of 2024. This development gives the company the opportunity to end this week in an excellent position.

What is happening with RIVN stock?

Despite this news, trading has been quite volatile for Rivian today. At the time of writing, shares are down 2% and have struggled to gain momentum after the market opened. But despite this turbulence, RIVN stock is still up more than 40% this week, showing that the startup can continue to make incremental progress even after a difficult month.

With Rivian now on track to meet its production targets for the year, investors have even more reason to be optimistic that a turnaround is imminent. After speculation about Rivian’s potentially bleak long-term prospects, this development should reassure more skeptical investors. I’m looking for Alpha Reports:

“The company released some investor presentations ahead of the event in which it reiterated its production guidance of 57,000 units for 2024. Production for the second quarter is expected to be between 9,100 and 9,300 units, with deliveries expected to be between 13,000 and 13,300 units.

Looking ahead, Rivian Automotive (RIVN) said the introduction of the Gen 2 model, combined with commercial cost reductions and raw material tailwinds, is expected to reduce material costs by about 20%. Rivian (RIVN) also said it is on track to achieve positive gross profit in the fourth quarter and positive adjusted EBITDA in 2027. A long-term financial goal is a GAAP gross margin of ~25% and a free cash flow margin of ~10%.”

Given the sharp decline over the past two quarters, RIVN stock is not out of the woods yet. However, the company’s positive forecasts suggest that a slow turnaround has already begun, especially with the cash injection from Volkswagen.

Why it is important

If Rivian does indeed begin to gradually climb back to the top of the EV market, its current low price will be tempting for investors with some patience. In recent days, sentiment on Wall Street has also improved significantly, with several analysts offering optimistic views on RIVN stock. Both Daniel Ives of Wedbush Securities and Andres Sheppard of Cantor Fitzgerald have raised their price targets and maintained their positive ratings. While Rivian still only has a “moderate buy consensus” on TipRanks, 12 out of 23 analysts still rate it as a “buy.”

If Rivian can actually meet its production projections, there’s nothing stopping the company from continuing its slow climb and making up the ground lost in the first half of 2024. Many smaller EV stocks still appear highly questionable, but Rivian is well positioned to continue leading a market recovery.

At the time of publication, Samuel O’Brient had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s disclosure policies.