Investors have been navigating various market themes over the past few years, seeking the next big opportunity. While the AI sector dominated the spotlight in recent times, the electric vehicle (EV) theme has made a remarkable resurgence lately. Stocks like Tesla and Rivian Automotive have witnessed significant price surges following robust delivery performance.
Tesla’s Resilience
At the beginning of the year, Tesla faced significant challenges, drawing intense scrutiny. Despite the initial hurdles, the stock has made a remarkable recovery in the past month, outperforming the S&P 500 with a 40% increase. Today, Tesla shares soared following the release of its Q2 delivery and production figures. The company delivered 444k EVs and produced 411k vehicles, triggering optimism among investors. Notably, while deliveries were down marginally year-over-year, the upcoming quarterly results on July 17 are likely to focus on margins, which have been a concern following a sluggish start in 2024.
Rivian’s Promising Performance
Similarly, Rivian Automotive experienced positive momentum post the disclosure of its delivery numbers, intensifying recent gains. With a 34% rise in the last month, the company is starting to attract buying interest, despite a 30% decline year-to-date. Rivian produced around 9.6k vehicles and delivered approximately 13.8k, aligning with its projections. Moreover, reiterating its annual production forecast of nearly 57k vehicles is a promising sign. Analysts have raised sales expectations for the upcoming quarterly announcement on August 6, with anticipated revenues of $997 million, well above the end-of-June forecasts.
Key Takeaways
The recent resurgence in EV stocks, propelled by robust delivery performances from Tesla and Rivian Automotive, signifies a significant shift in sentiment. This uptick comes after a sluggish start for many EV stocks in 2024.