Rivian (RIVN) and Fisker (FSR) stocks jump on optimistic EV delivery expectations

The end of the third quarter is approaching as EV makers prepare for a crucial stretch into the end of the year. Several EV stocks, including Rivian (RIVN) and Fisker (FSR), are climbing Tuesday on optimistic delivery expectations.

Rivian stock rises on buy rating, Q3 delivery expectations

According to recent Experian Data, Rivian is outpacing other EV startups through July, claiming 2.8% of the market.

Rivian recorded 2,750 R1T and R1S registrations in July, a slight improvement over its monthly average of 2,596.

After easily surpassing Q2 expectations, with production up 50% (13,992) and deliveries rising 60% (12,640), Rivian raised 2023 guidance to 52,000 units.

At Morgan Stanley’s annual Laguna Conference earlier this month, Scaringe said the EV maker “rounded the corner.”

Despite this, Rivian’s stock slipped almost 20% from mid-month following the consensus Q3 delivery estimate falling from 15,000 to 14,000, according to FactSet.

At least one analyst believes Rivian will beat expectations. Baird analyst Ben Kallo placed a buy rating on Rivian stock Tuesday, according to Barrons.

Kallo wrote in a report, “Concerns regarding third-party reports of weakening demand have led to recent weakness in the stock and we believe underlying demand remains strong with production improving.” He added:

We see Q3 deliveries as a near-term catalyst and expect sentiment to improve as Rivan continues to realize cost benefits from an improving supply chain and the use of in-house components.

Rivian introduced its Enduro drive units and LFP battery packs in the second quarter, which has been a “key enabler” of near-term production performance, according to Scaringe.

The analyst placed a $30 price target on Rivian’s stock, suggesting around 34% upside. Shares of Rivian are up almost 6% Tuesday. However, they are still down over 34% over the past year.

Fisker ramps EV deliveries

Another EV maker’s stock is rising today; after Fisker announced it had built over 5,000 Ocean electric SUVs, the EV maker expects to ramp deliveries to 300 units per data later this year.

Earlier this month, Fisker said it had built 3,123 electric models. With around 1,900 units built in the last three weeks, that’s about 100 per day.

Fisker has delivered over 900 vehicles to customers in the US and Europe, with “several hundred more expected to be delivered this week.”

CEO Henrik Fisker commented on the progress, saying:

As we complete the third quarter and move into the fourth, we are preparing to significantly increase our pace of deliveries in the US and Europe.

The recent Experian data ranked Fisker last with 37 total registrations in the US so far this year. But, the company delivered its first EV in the US in June and had 30 new registrations in July.

The EV maker said it aims to produce between 20,000 and 23,000 Ocean EVs this year in August, down from its previous guidance of 32,00 to 36,000.

At 300 per day, that would amount to nearly 23,000 vehicles in the fourth quarter (assuming six days of production) for a total of around 28,000 this year.

Fisker’s stock has also slipped over the past few weeks, falling 25% from mid-month. Following the news Tuesday, Fisker’s stock jumped 11%.