Rivian jumps as upcoming affordable SUV powers EV delivery forecast

Rivian shares jumped 19% before the bell on ​Friday after the electric-vehicle maker forecast a ​53% jump in annual deliveries, ‌banking ​on the launch of its affordable SUVs - a key step in its push toward profitability. The new R2 model is expected to ‌be rolled out in the second quarter with a starting price of nearly $45,000 - similar to Tesla's Model Y - which Rivian hopes will attract more buyers.

"For the stock itself, nothing matters more than ‌a timely launch for the R2 SUV, and in this regard, Rivian remains essentially on ‌track," Piper Sandler analysts said. The R2 rollout comes as several legacy automakers are scaling back current and planned EV production after policy shifts by the Trump administration, including new tariffs on auto-parts imports and scrapping of ⁠key emissions ​penalties.

Automakers such as ⁠Ford and General Motors have each announced billions of dollars in writedowns as they rein in their EV ambitions. Rivian, ⁠which remains unprofitable, expects overall deliveries to be between 62,000 and 67,000 vehicles this year, compared with ​estimates of 64,130 vehicles, according to Visible Alpha data.

The EV maker's adjusted loss per ⁠share for the fourth quarter came in at 54 cents, lower than estimates of 68 cents. "Rivian has had ⁠its ​fair share of problems on its journey to be a major player in the EV world, yet its fourth quarter results would suggest the business is finding its groove," ⁠said Dan Coatsworth, head of markets at AJ Bell.

The company's stock had soared more than ⁠48% last year, partly ⁠due to optimism around R2. But the overall sentiment around EVs has been subdued this year, dragging Rivian's stock down 29%, while Tesla ‌has dropped ‌around 7%.