Rivian stock is in recovery mode: How high can it go?


U.S. electric vehicle (EV) maker Rivian's (NASDAQ: RIVN) share price has started the third quarter with an aggressive bullish trend, surging by 50 percent in the last 6 days. It rose to a high of $26.50 on Friday, which was the highest point since December 14. Rivian is a leading electric vehicle (EV) company that focuses on trucks, delivery vans and sport utility vehicles (SUVs).

The stock price was in a strong bearish trend in the past few months. It has plunged by more than 90% since going public in 2021. The stock's significant run-up in the last 2-weeks is largely due to two things: impressive delivery numbers for the second quarter and Amazon has announced the launch of new Rivian electric delivery vans in Europe.

Rivian Q2 deliveries beat estimates

Rivian share price regain bullish momentum since the firm published the second-quarter delivery numbers last week. The automaker produced 13,992 vehicles and delivered 12,640 vehicles during the second quarter, a 59% increase from last quarter and well above analysts' expectations of 11,000 deliveries. The second quarter production and delivery results include Rivian’s R1T pickup, R1S SUV, and all-electric Amazon delivery van. The carmaker plans to complete production of 50,000 vehicles this year, narrowly meeting its 2022 target of 25,000 vehicles.

Rivian electric vans making their debut in Europe

Last week, Amazon, the world’s largest online retailer started rolling out its custom electric delivery vans from Rivian in Europe. The tech giant will launch more than 300 of these vehicles on the streets of Germany in the coming weeks, to make package deliveries. Amazon has been testing deliveries of pre-production Rivian vehicles in Europe since last year. Amazon now has 5,000+ Rivian EV delivery vans on the road delivering packages across more than 800 U.S. cities.

Considering the recent positive developments, Rivian’s biggest concern is the rising competition in the EV industry. The pioneer automakers Tesla, Ford and General Motors have already unveiled their EV trucks and vans. Although the strong quarterly delivery numbers are a great positive sign for the EV Startup that has for months struggled to raise output in the face of supply-chain disruptions.

Rivian (NASDAQ: RIVN) short-term technical outlook

On the technical side, the recent price action, which has seen the stock value increase by over 70% in the past two weeks, also points to a continued push to the upside. Therefore, based on the fundamental analysis above, I expect Rivian’s share price to continue going up for the next few trading sessions. There is a high likelihood that we might see the company’s stock trading above the $32 level in the next few weeks. A further recovery allows for a push toward $36 and $40 serving as additional upside targets. However, we can also expect a pullback towards $21.30 and then $19.60 before the next move-up. For further downside side, the bears need to see a confirmed break below $16 again to objectively tell us that the recent recovery has ended.

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