By Harshita Mary Varghese
April 2 (Reuters) – Rivian Automotive exceeded analysts’ expectations for first-quarter vehicle deliveries, indicating stabilized demand for its SUVs and R1T pickup trucks after a decline last year due to the end of U.S. tax credits for electric vehicles.
Shares of the Irvine, California-based company rose about 2% on Thursday.
The automaker delivered 10,365 vehicles between January and March, surpassing estimates of 9,678, according to Visible Alpha. It also reiterated its full-year deliveries forecast of 62,000 to 67,000 vehicles.
U.S. gasoline prices have risen sharply since the Iran war started in February, which analysts believe could turn more potential buyers to electric vehicles in a boost for companies such as Rivian and its bigger rival Tesla.
Rivian‘s sales had fallen in the December quarter after a $7,500 U.S. federal EV tax credit expired in September, pushing up prices and removing an incentive that had long drawn buyers.
Rivian produced 10,236 vehicles in the March quarter, compared with estimates of 9,852.
Meanwhile, Tesla <TSLA.O reported its weakest quarterly deliveries in a year, missing Wall Street expectations, with a growing imbalance between output and demand.
Higher volumes bode well for Rivian ahead of its new, cheaper R2 model, which will start deliveries this spring. The cheapest R2 variant, starting at around $45,000, is expected to launch next year.
“Solid deliveries in the quarter encouragingly suggest the upcoming R2 launch is not materially cannibalizing R1 demand,” BNP Paribas Equity Research senior analyst, James Picariello said.
Rivian expects the new model to significantly broaden its customer base and take on Tesla’s best-selling Model Y Premium, priced from $44,990.
It also struck a long-term partnership with Uber last month, under which the ride-hailing firm will invest up to $1.25 billion in the EV maker and deploy Rivian‘s fully autonomous R2 SUVs as robotaxis from 2028.
Rivian will release first-quarter results on April 30, after markets close.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Vijay Kishore)
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