© Reuters Rivian (RIVN) Reiterates Production Guidance; Truist Reiterates Buy Rating
By Michael Elkins
Truist Securities reiterated a Buy rating and $65.00 price target on Rivian Automotive Inc (NASDAQ:) after the electric vehicle company released its 3Q sales and delivery numbers for the month of September.
Rivian reportedly produced about 7.4K vehicles in the month, compared to the street estimate of 8.6K. Deliveries came in at around 6.6K, compared to the street’s 6.7K estimate.
The automaker also reiterated the company’s FY22 production target of 25K vehicles, and while delivery numbers may have come up short of expectations, Truist views the reiterated FY22 production target as the most important component of the release. The confidence that management has that Rivian can reach its goal provides some incremental comfort in the company’s ability to increasingly navigate the challenging supply chain backdrop.
Separate from the production release, as reported by AP on Friday, a Georgia judge rejected a tax break plan for Rivian’s proposed Georgia facility that would have exempted the company from ~$700MM in property taxes over 25 years. Truist expects the involved counties to challenge the ruling, and will look for more commentary from the company in upcoming 3Q earnings.
Shares of RIVN are up 10.69% in mid-day trading on Tuesday.
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