Rivian (RIVN) Surges on Deliveries Beat, Positive News on Production Outlook

Rivian (RIVN) stock is rallying 19% this morning after the electric-vehicle maker reported that its fourth-quarter deliveries had exceeded the Street’s average estimate. Moreover, the automaker noted that a shortage of a part was no longer limiting its production capacity.

Rivian’s higher-than-expected Q4 deliveries contrast favorably with those of Tesla (TSLA). Yesterday Elon Musk’s automaker reported that it had handed over fewer EVs than expected last quarter.

A state-of-the-art electric vehicle charging at a station at a suburban mall.

Rivian’s ability to outshine its much larger, better-known competitor in this way may be contributing to the strong performance of RIVN stock this morning.

Rivian’s Q4 Deliveries and the Elimination of Constrained Production

Rivian handed over 14,183 EVs last quarter, well above analysts’ average estimate of about 13,500. Its deliveries surged over 40% compared with Q3.  Further, the automaker delivered 51,579 automobiles in all of 2024, coming in towards the high end of its guidance range of 50,500 to 52,000.

Meanwhile, the automaker reported that the production of its R1 electric trucks and its commercial vehicle was no longer being hindered by the shortage of a key part.

The Contrast With Tesla

Yesterday the EV maker reported that it had provided buyers with 495,570 EVs, well below analysts average estimate of slightly over 500,000 deliveries. TSLA stock retreated on the news yesterday, but it is gaining ground this morning.

While we acknowledge the potential of RIVN, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RIVN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: The author owns shares of RIVN. He has no plans to trade the shares in the next 48 hours.  This article is originally published at Insider Monkey.