Investors have been navigating various market trends in recent years, seeking the next big opportunity. While AI captivated the market’s attention last year, the EV sector has recently shown signs of revival, with companies like Tesla and Rivian Automotive experiencing robust price movements post solid delivery figures.
Let’s delve deeper into the factors fueling this outperformance.
Tesla Rebounds Strongly
At the start of the year, Tesla shares faced challenges and intense scrutiny. However, in the past month, the stock has staged a significant comeback, surging nearly 40%, a stark contrast to the S&P 500’s modest 4% gain during the same period.
Image Source: Zacks Investment Research
After today’s release of delivery and production data, Tesla witnessed a spike in its stock price. The EV giant reported 444k deliveries in Q2 and produced 411k EVs. Although delivery figures saw a slight 4.1% dip year-over-year, investors were pleased with the results.
The upcoming quarterly release on July 17 will likely shine a spotlight on margins, a significant focus area due to recent margin pressures that contributed to the sluggish stock performance earlier this year.
Image Source: Zacks Investment Research
Rivian’s Delivery Success
Rivian Automotive also witnessed a positive upswing post the revelation of its delivery metrics, further solidifying recent gains. While the stock has climbed 34% in the last month, it remains down 30% year-to-date.
Image Source: Zacks Investment Research
The company’s production of approximately 9.6k vehicles and delivery of 13.8k vehicles matched Rivian’s expectations, bolstered by reaffirming guidance to produce around 57k vehicles annually.
With its next quarterly report set for August 6, analysts have raised their sales forecasts, with the current $997 million estimate notably surpassing the late-June projection of $923 million.
Image Source: Zacks Investment Research
Bottom Line
The recent positive delivery performance by Tesla and Rivian has injected fresh momentum into the EV sector, marking a significant shift in sentiment from the sluggish start many EV stocks faced in 2024.
