Why Rivian Automotive Stock Is Soaring Today

Rivian Automotive (NASDAQ: RIVN) has made a name for itself in the increasingly crowded electric vehicle (EV) field with its limited vehicle lineup. The company has focused on producing just a fully electric pickup truck, an SUV, and a commercial delivery van. That focus may have much to do with why Rivian shares are marching higher today.

Rivian's R1T is one of just a few electric pickup truck offerings. Tesla has entered the market with its unique Cybertruck, but the R1T's biggest competition is arguably Ford's F-150 Lightning. And it's news about the Ford EV that may have had Rivian stock jumping by nearly 10% Friday morning. At 1:55 p.m. ET, Rivian shares still held on to a gain of 4.5%. The move has helped Rivian stock log an increase of more than 20% in the last month.

Rivian's gaining momentum

Last month, Rivian told investors it expects to deliver between 50,500 and 52,000 EVs this year. That would only slightly surpass 2023 deliveries. But the company also recently provided encouraging news related to its future capital position. And it is preparing to start production of its next-generation R2 platform next year as well.

That has bolstered the stock recently, and yesterday it got another boost when Ford released its November vehicle sales update. That's because sales of Ford's F-150 Lightning plunged by 17% last month year over year.

Ford has been throttling production plans for its fully electric models and leaning more on its internal combustion lineup as well as hybrid electric models. That's less competition for Rivian and its R1T truck. And yesterday's November update from Ford was a data point supporting that scenario.

Rivian was already gaining momentum from announcements last month about plans for a $5.8 billion investment from Volkswagen Group and the potential for up to $6.6 billion in additional financing via a U.S. Department of Energy loan.

With a bolstered balance sheet and less competition from Ford's electric pickup, Rivian is set up for a potentially promising 2025.

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Howard Smith has positions in Rivian Automotive and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.