'High Likelihood' Of Rivian Raising 2023 Production Guidance, Says Analyst After Q3 Delivery Beat Fails To Impress Investors

Rivian Automotive, Inc. RIVN shares fell on Monday despite the electric vehicle maker’s third-quarter deliveries exceeding expectations.

Future Fund’s Gary Black weighed in on the discord between the deliveries update and the stock reaction in a post on X, formerly Twitter, on Monday.

What Happened: Rivian’s third-quarter deliveries of 15,564 units and production of 16,304 units exceeded the consensus estimates of 14,973 units and 15,545 units, respectively, Black noted. The negative stock reaction may have been due to the company leaving its 2023 production guidance unchanged at 16,304 units, he said.

Black noted that Rivian typically updates production guidance on the earnings date and not along with the production and deliveries update. If the company’s production remains flat at third-quarter levels in the fourth quarter, 2023 production could come in at 54,400 units, he said.

“So there’s a high likelihood RIVN raises their production guidance with 3Q earnings on 11/9E,” he added.

See Also: Is Rivian (RIVN) Stock A Good Buy Right Now

Why It’s Important: Rivian’s above-consensus third-quarter performance assumes importance as EV leader Tesla, Inc.’s TSLA third-quarter sales came in below the lowered bar. Sales did not get the lift the company was hoping for despite the lavish price cuts and discounts it offered.

Rivian is due to announce its third-quarter results after the market closes on Nov. 7. The company is widely expected to announce a loss of $1.32 per share on sales of $1.31 billion, a 138% year-over-year increase.

Rivian ended Monday’s session down 2.55% at $23.66, according to Benzinga Pro data.

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