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Amidst recent struggles, Rivian (NASDAQ:RIVN) stock has found its footing again owing to two upbeat developments.
Although last week introduced Rivian’s affordable R2 electric vehicle (EV) platform, propelling long-term optimism, today’s surge isn’t linked to this unveiling. What’s driving the surge is data reflecting Rivian’s robust registration growth early this year, despite RIVN stock challenges. Moreover, Rivian now boasts access to the Tesla (NASDAQ:TSLA) Supercharger network.
This rare confluence of catalysts is positioning the EV stock for a strong week as Rivian seeks to recover lost ground in 2023.
The Surge of RIVN Stock
From the market open, RIVN stock has been on an upward trajectory today. Closing with over 3% gains, Rivian has exhibited volatility in March, but with a noticeable shift in Wall Street sentiment. Out of 24 analysts on TipRanks, 13 currently recommend buying RIVN shares, a sentiment likely to strengthen further post today’s growth triggers.
New data from S&P Global Mobility indicates that Rivian’s U.S. registrations in January 2024 outpaced many counterparts, primarily fuelled by R1S sales boosting registrations fourfold to 3,818. Notably, Rivian surpassed several major automakers in this metric.
However, a groundbreaking announcement may overshadow this achievement. In a recent blog post, Rivian disclosed its partnership enabling Rivian vehicles to be charged at Tesla Superchargers using a designated adapter:
“Because we handle our charging hardware and software in-house, we can seamlessly integrate most fast chargers — including the Supercharger network — into our charging ecosystem. Our unified digital platforms make it easy to transition between our mobile app and in-vehicle infotainment. This allows Rivian owners to enjoy an end-to-end experience where they can do their trip planning, filter chargers, set route preferences, navigate, and add stops without missing a beat.”
With Tesla boasting over 50,000 Superchargers globally, this partnership significantly eases EV charging for Rivian drivers, potentially fostering higher sales, especially in regions with limited charging infrastructure.
Path Forward for Rivian
As Rivian rebounds from a challenging prior year, its future shines bright. The automaker champions growth and innovation, showcasing a compelling case to investors for not underestimating its potential. By rolling out more affordable models and expanding charging options for drivers, Rivian is paving the way for a promising trajectory.
With these positive factors at play, it’s likely analysts will align with optimistic views on RIVN stock. Should this happen, share prices are poised to respond positively, inching closer to prior highs.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
