The EV market is recording increased deliveries and production, as the historically strong season for electric vehicle producers is currently in full swing, with a projected 250 million electric vehicles on the road by 2030.
U.S.’s largest EV producer, Tesla (NASDAQ: TSLA) stock recorded a 32% gain in the previous month, but its rival Rivian (NASDAQ: RIVN) boasts an increase of 65.28% over the same period.
These gains continued in the previous five trading sessions, with progress of 21.37%. The latest trading day, July 12, brought 8.08% upside alone, with gains of 1.74% extending in the pre-market trading on July 15.
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Current momentum has investors wondering whether the $20 threshold is within reach or whether RIVN stock will soon retrace its gains.
Technical analysis of RIVN stock
Rivian Automotive’s stock has broken out of its downward trend in the medium to long term, suggesting that the rate of decline is slowing down. The stock has support at $15.30 and resistance at $24.20.
Another positive sign for Rivian Automotive stock is that it trades above its 50,100, and 200-day moving averages, further supporting its positive breakout.
A positive volume balance indicates that trading volume is higher when the stock price is rising and lower when the price is falling. This pattern strengthens the stock.
Additionally, the Relative Strength Index (RSI), which is near 70, shows strong positive momentum in the short term, as the increasing buying pressure tends to drive stock prices upwards.
What do analysts think about RIVN stock?
Wall Street analysts seemingly have a differentiating view on the future of Rivian stock when it comes to its price target, while they agree on the “moderate-buy” rating. Of 22 analysts, 12 recommended a “buy,” 8 opted for a “hold,” and 2 advised a “sell.”
The price targets range from $8 to $30, with the average target at $17.26, which represents a potential 4.69% downside from the current RIVN stock price levels.
However, the most recent price targets represent an increasing optimism on Wall Street regarding RIVN stock.
On July 12, Mizuho increased Rivian stock’s price target from $11 to $15 while maintaining a “neutral” rating on the electric vehicle manufacturer. This adjustment occurred after Rivian announced its second-quarter vehicle deliveries, totaling around 13,800 units.
Rivian marked a 9% increase year-over-year and a 1% rise from the previous quarter, exceeding the production figure of approximately 9,600 vehicles. Rivian’s deliveries also surpassed the consensus expectations of about 11,500 for the quarter.
The new deal with German carmaker Volkswagen, which will see the auto industry giant invest $5 billion in Rivian production, is further bolstering Wall Street’s bullish stance.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
