Broker remains bullish on Tesla rival Rivian despite production falling short 

The company maintains its outperform rating, with the target price set to US$130.  

Rivian’s first quarterly results since its IPO in November highlighted strong reservation demand for its R1S and R1T electric SUV and truck models but Wedbush, the broker, noted that the company produced 652 R1T vehicles as of December 15, delivering 386 units. 

This means it will be roughly 300 units short of its 2021 goals, with difficulty in ramping up the Illinois production facility and component shortages to blame.  

Despite this, the broker remains bullish, with reservations for its models on course to be at 100,000 by the middle of next year.  

It also states the issue for Rivian currently is clearly supply, and not demand.  

News that it has started breaking ground on a second production facility in Georgia should help ease some of those concerns.