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Rivian shares soar: What happened?
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💡Summary Rivian Automotive is a major player in the EV market, with sales expected to grow due to global EV market expansion and backing f もっと見る
💡Summary
Rivian Automotive is a major player in the EV market, with sales expected to grow due to global EV market expansion and backing from Amazon.
Global EV sales are projected to capture nearly one fifth of the overall car market and drive a transformative shift in the auto industry with implications for the energy sector as a whole.
Despite its significant cash burn, RIVN has shown resilience in revenue growth and is expected to improve its financials in the coming years.
RIVN has significant potential, but should start working on improving its cash flow, while continuing its strong growth.

Rivian (RIVN.US) yesterday rose more than 5%, close at $26.01. Wedbush changed the target price to 30 from 25. They believe Rivian will bring more good news in 12 to 18 months in the future. The CEO of Rivian RJ Scaringe said they will make supply chains be normal and search more commercial cooperative partner in Q2. But most investors have a question about Rivian. How did they do that?

First the reason may relate to Rivian options buyers be helping drive stock higher. Rivian shares, which took off last week after the company reported better than expected quarterly vehicle deliveries, have risen 83% over the last eight trading sessions. Some 831,000 Rivian options contracts traded on Monday, or two times its average daily volume. Much of the options trading has consisted of investors buying super short dated calls.

Large purchases of out of the money call options contracts that are not profitable but stand to gain in value as the stock climbs can sometimes give an additional lift to a stock's price. Second, R1 is largely priced above the limits set by IRA, and the battery content requirements are challenging. On R2, the entirety of the program has been set up to make sure that it's IRA compliant. So the sourcing of battery cells, where they're produced, how the packs come together all will be in the US.

🎙️Q:
1. Will EV stocks overtake chip stocks to lead the market?
2. What's your investment strategy?

View disclosures here.
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