AUTO

Rivian Stock Jumps While Production Falls in Q4. What Investors Didn’t Expect

January 3, 2025

Rivian stock jumped 21% despite a 27% production drop.
Supply-chain issues no longer constrain Rivian’s production.
2025 Rivian financing offers include 1.99% APR for R1S buyers.

Why did Rivian’s stock surge despite mixed production numbers? The answer lies in investor expectations and good news on supply-chain challenges. Even with a year-over-year production drop of 27% in the fourth quarter, Rivian reassured investors with deliveries meeting forecasts and the resolution of a critical supply issue.

In the fourth quarter of 2024, Rivian produced 12,727 vehicles. That’s a 27.4% drop compared to the same period last year. Not exactly the news you’d want to frame on your office wall, right? But there’s a silver lining. Rivian delivered 14,183 vehicles in the quarter, a modest 2% increase year over year. For the entire year, the company built 49,476 vehicles and delivered 51,579, which are numbers that landed within the guidance Rivian had given investors.

What really got people talking, though, wasn’t the vehicle count. Instead, it was Rivian’s announcement that an annoying supply-chain snag had been resolved. The shortage of a shared component used in their R1 and RCV platforms is, according to Rivian, “no longer a constraint.”

Electrify Expo Long Beach 2024 Rivian R1S R1T R2 test drive — _{Attendees of Electrify Expo test drive the Rivian R1S and R1T on the Streets of Long Beach.}

Rivian stock jumped over 21.74% early Friday after the company reported better-than-expected production numbers. They built more vehicles than the 12,000 analysts had estimated and exceeded the 11,400 consensus. Fixing supply-chain issues also reassured investors about future stability. Analysts are recommending a “Buy” with an $18 price target, according to Yahoo Finance.

Investors love optimism, and Rivian’s update gave them a reason to hope for better days, especially after a tough year that saw the stock dip about 35%.

Wall Street expects Rivian to deliver around 56,000 vehicles in 2025. While the company hasn’t confirmed its production plans, resolving supply-chain issues suggests production could improve.

For those considering a Rivian, financing deals are available on the 2025 R1T and R1S models. Rivian Financial Services offers a 1.99% APR for 60 months to well-qualified buyers financing an R1S Adventure Dual Max priced at $91,700. Leasing options include the R1S Dual Standard for $799 per month with $8,694 due at signing. These offers are open until early 2025, with specific terms and credit approval required.

Rivian’s R1S SUV and R1T truck offer a combination of luxury and capability, designed for drivers who value performance and versatility. Starting at $70,000–$90,000, they cater to those looking for a premium electric vehicle option.

As Rivian prepares to share its fourth-quarter financial report on February 20, all eyes will be on its updated forecasts. Will 2025 bring smoother production, higher sales, and potentially more competitive pricing? Time will reveal the answers.