Rivian Stock: This Tesla Rival is Soaring as Some Analysts See More Gains

Rivian (NASDAQ: RIVN ) stock has surged recently, helped by the rising deliveries and the success of its recently launched R2 model.

It has soared by nearly 50% from its lowest level this year, and some analysts see more gains ahead.

Rivian Stock Jumped After Boosting Deliveries Forecast Rivian, a top Tesla (NASDAQ: TSLA ) rival, soared after publishing its vehicle delivery numbers.

In a report, the company said that its production jumped to 12,613 in the last quarter, while deliveries hit 12,194.

Its deliveries were higher than the predicted range of between 9,000 and 11,000.

Most importantly, the company expects that its demand will accelerate in the second half of the year, with deliveries rising to between 65,000 and 70,000.

Boosting Rivian’s growth is R2, its cheaper brand that currently starts at $54,000.

It then plans to launch a cheaper variant with a retail price of $44,990 next year.

In past statements, the management has said that it can build up to 150,000 R2 vehicles in its plant in Illinois, a figure that will increase when it launches its plant in Georgia.

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And most importantly, the management expects to start selling it overseas in Europe for the first time ever.

Analysts have welcomed the ongoing growth at Rivian.

A Needham analyst maintained a bullish outlook for the stock, with a target price of $23, representing a 23% increase from the current level.

Cowen maintained the target to $20.

The average estimate among analysts is that its annual revenue will jump by 30% this year to $6.04 billion.

It will then jump by 64% in the next financial year to $9.42 billion.

Still, the main challenge that Rivian faces is that it is still burning a lot of cash, with the management guiding towards an EBITDA of minus $1.8 billion and minus $2.1 billion.

The company does not expect a positive EBITDA next year, with the most likely scenario being 2028.

As a result, there is a risk that it will raise cash again.

RIVN Stock Chart Analysis Rivian stock chart | Source: TradingView The daily chart shows that Rivian shares have rebounded, rising from a low of $12.6 in May to a high of $19.80 last week.

It then settled at $18.63, and is substantially above the 50-day and 200-day Weighted Moving Averages (WMA).

The two averages are about to cross each other, forming a golden cross pattern.

Rivian has also formed an inverted head & shoulders pattern, a common bullish reversal sign.

Therefore, these technicals suggest more gains are possible, potentially to last year’s high of $22.72.

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