Rivian Automobile (NASDAQ:RIVN) has made a name for itself in the increasingly crowded electric vehicle (EV) field with its limited range of vehicles. The company has focused on producing a fully electric pickup truck, an SUV, and a commercial delivery van. This focus may have a lot to do with why Rivian shares are soaring higher today.
Rivian's R1T is one of the few electric pickup truck offerings. Tesla entered the market with its unique Cybertruck, but arguably the R1T's biggest competitor is FordIt's the F-150 Lightning. And it was news about the Ford EV that may have caused Rivian shares to jump nearly 10% Friday morning. As of 1:55 p.m. ET, Rivian shares still held a 4.5% gain. The move helped Rivian shares rise more than 20% over the past month.
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Last month, Rivian told investors it plans to deliver between 50,500 and 52,000 electric vehicles this year. This would only slightly exceed 2023 deliveries. But the company also recently released encouraging news regarding its future financial situation. And it is also preparing to start production of its next-generation R2 platform next year.
This has strengthened the stock recently, and yesterday it received another boost when Ford released its November vehicle sales update. That's because sales of Ford's F-150 Lightning plunged 17% last month, year over year.
Ford has limited its production plans for its fully electric models and relying more on its internal combustion range as well as hybrid electric models. That's less competition for Rivian and its R1T truck. And yesterday's November update from Ford was a data point supporting this scenario.
Rivian was already gaining momentum following last month's announcements of a $5.8 billion investment project from Volkswagen Group and the ability to secure up to $6.6 billion in additional financing through a loan from the U.S. Department of Energy.
With a strengthened balance sheet and less competition from Ford's electric pickup, Rivian is poised for a potentially promising 2025.
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