Rivian (RIVN) on Thursday affirmed its full-year production forecast and estimated that second-quarter deliveries will be above analyst expectations. A day after shares surged on news of its joint venture with Volkswagen (VWAGY), RIVN stock fell on Thursday.
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During Rivian's investor day on Thursday, the EV startup announced it still expects to produce 57,000 vehicles in 2024. It sees Q2 deliveries totaling between 13,000 and 13,300. Analysts predict second-quarter deliveries of 12,000, according to FactSet.
Rivian reports official Q2 delivery and production numbers on July 2.
The company also reported Thursday that so far this year it has delivered between 26,600 and 26,900 vehicles and has produced 23,100-23,300 units.
Rivian also affirmed its goal of positive gross profit per vehicle by the fourth quarter. In Q1, Rivian lost $38,784 per vehicle delivered.
The startup said Thursday its path to gross profit per unit delivered is primarily by reducing material costs, along with regulatory credits and other efforts.
Volkswagen Deal
Late Tuesday, Rivian announced a partnership with Volkswagen. The $5 billion plan involves the global auto giant investing in the EV startup and leveraging some of its engineering and designs.
The partnership will focus on software along with electrical architecture design and development, according to Rivian executives. Currently, the joint venture does not include battery technology, propulsion platforms, high-voltage systems or autonomous driving.
Rivian Chief Executive RJ Scaringe said Tuesday the joint venture will have two co-chief executives. Rivian will appoint the technical leadership and Volkswagen will name the co-CEO in charge of operations.
Both Volkswagen and Rivian will continue to independently manage and operate their respective vehicle businesses, according to Scaringe.
The companies expect the deal will total $5 billion. This includes an initial $1 billion investment by Volkswagen and then plans for another $4 billion.
Rivian Stock Performance
RIVN shares fell 1.8% to 14.48 during Thursday's market tradeafter soaring 23.2%, hitting an intraday high of 16.35, on Wednesday.
On Tuesday, Rivian stock jumped 8.6% to 11.96. Scaringe sold 71,429 shares of RIVN on Tuesday, for a value of $803,576.25, according to regulatory filings.
It was Scaringe's second time selling Rivian stock this month, after unloading 71,429 shares for a market value of $820,883.50 on June 10.
Ahead of Wednesday trade, RIVN shares had tumbled 50% in 2024, dropping back below their 200-day. The stock has been trading along its 50-day moving average and started Wednesday about 85% below its IPO price of $78, according to MarketSurge analysis.
Rivian stock ranks eighth in IBD's Automakers industry group. RIVN has a 40 Composite Rating out of 99. Additionally, the stock has a 35 Relative Strength Rating and itsEPS Rating is 30 out of 99.
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