Rivian Getting Major Catalyst With Leasing? New Q4 Data, Leasing Growth For EVs Say Yes

Electric vehicle company Rivian Automotive RIVN recently reported fourth-quarter financial results.

The results included a look back at key 2023 production and delivery milestones as well as guidance that the company will produce 57,000 vehicles in 2024. Here's a look at how leasing could impact the company's growth.

What Happened: Rivian started offering leasing for its R1S SUV in January, which could be a major catalyst for the company.

Citing data from a new Experian financing report, Electrek highlights that the R1S was the fifth-bestselling electric vehicle in the United States in the fourth quarter. Here were the top five by market share of electric vehicles.

Tesla Model Y: 31.9%

Tesla Model 3: 17.6%

VW ID.4: 3.9%

Mustang Mach-E: 3.4%

R1S: 3.4%

Based on the above, Rivian’s R1S trailed vehicles from Tesla Inc TSLA, Volkswagen VWAGY and Ford Motor Company F. It, however, is within reach of making the list of the top three bestsellers if momentum can continue.

The R1S was also the seventh-bestselling electric vehicle in the United States for all of 2023.

Related Link: Rivian Production Plant Puts ‘Ceiling’ On Stock, Analyst Says In Downgrade

Why It's Important: According to the report, electric vehicles made up 8.55% of new retail sales in the U.S. in the fourth quarter. EVs set a new record for percentage leased in 2023. According to Experian, 30.7% of new EVs were leased, 44.8% were financed with loans and 24.4% were paid with cash.

The percentage of electric vehicles leased in 2022 was 9.8%, which means that 2023 saw a significant increase in leasing activity as more models were offered via leases and not just through cash or loan sales.

Of the top-five bestselling electric vehicles in the fourth quarter, the R1S saw the lowest percentage of vehicles leased at 0.94%. Here are the percentages of the top four EVs leased in the fourth quarter.

Model Y: 9%

Model 3: 14%

ID.4: 75%

Mach-E: 39%

Given these percentages, Rivian’s R1S sales might experience a notable increase with the introduction of a leasing option.

This potential catalyst coincides with the possible volatility in Rivian shares leading up to the unveiling of the R2 mid-size SUV on March 7.

RIVN Price Action: Rivian shares traded at $11.36 versus a 52-week trading range of $10.05 to $28.06. Shares of the EV company are down 28% over the last year.

Read Next: Gene Munster Suggests Apple Acquire Rivian Following Surprising Cancellation Of Apple Car Project

Photo: Shutterstock