The stock price of American electric vehicle (EV) manufacturer Rivian (NASDAQ: RIVN) is experiencing a strong start to 2025 as investors react positively to impressive delivery numbers for the past year.
Notably, this performance emerged despite Rivian facing significant headwinds in 2024 from supply chain disruptions.
At the end of the last trading session, RIVN stock closed at $16.38, marking a 24.56% gain for the day. In the first four days of 2025, Rivian’s share price has rallied 23.52%. However, RIVN has dropped more than 15% over the past year.
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Why Rivian stock is rallying
This recent rally reflects investor optimism following Rivian’s announcement that it surpassed analysts’ estimates for 2024. Specifically, the company reported delivering 14,183 vehicles in Q4 2024, exceeding the forecasted 13,500.
For the full year, Rivian delivered a total of 51,579 vehicles, surpassing the previous year’s figure of 50,122 and aligning with its forecast.
On the production front, Rivian manufactured 12,727 vehicles in Q4, with the annual total reaching 49,476. This fell short of the company’s 2024 production target of 57,000 units, revised downward in October due to supply chain challenges.
Following this adjustment, the stock faced bearish sentiment as investors questioned the company’s ability to meet future goals.
Initially, the EV maker cited supply shortages for the revised forecast. However, in November, Rivian shared bullish news, announcing a $5.8 billion joint venture with German automaker Volkswagen to develop new EV architectures and software.
What next for Rivian stock
Looking ahead, although Rivian operates in a highly competitive market dominated by Tesla (NASDAQ: TSLA), the firm is implementing several strategies to grow its customer base, such as working on two new models—the R2 and R3—with deliveries of the R2 expected in the first half of 2026.
Additionally, the company is expanding its charging network to serve other EV brands. For instance, its new Joshua Tree Charging Outpost in California features 12 high-speed chargers (up to 900 volts) and amenities like restrooms, Wi-Fi, a play area, and a shop.
Meanwhile, Wall Street analysts have issued cautiously optimistic forecasts for Rivian stock. As reported by Finbold, Truist lowered its price target from $16 to $12, citing production challenges and missed delivery targets undermining investor confidence.
Conversely, Mizuho adjusted its target from $15 to $12, noting U.S. EV demand challenges but expressing optimism about Rivian’s long-term prospects, driven by the upcoming R2 platform and improved financial stability through its Volkswagen partnership.
Guggenheim reduced its target from $21 to $18 but maintained a ‘Buy’ rating, highlighting ongoing supplier issues that could impact production through Q4.
While Rivian is navigating a challenging environment, its ability to sustain a stock rally will likely depend on maintaining strong delivery numbers and reassuring investors about its capacity to achieve future targets.
Featured image via Shutterstock
