Rivian Forms Inverted Head-and-Shoulders, Plans 75M Share Sale

Rivian shares climbed to $20.15 on Monday, the highest level since Jan. 8, after the electric-truck maker reported second-quarter deliveries of 12,194 vehicles. The stock broke above a technical neckline at $18.17 that completes an inverted head-and-shoulders pattern on the daily chart. The 50-day moving average has crossed above the 200-day moving average, creating a golden cross, and the Relative Strength Index has been rising.

Traders and chart models have identified a technical target near $22.72. Some market participants noted that a pullback to retest the $18.17 level after the breakout would align with a common break-and-retest pattern.

Rivian reported production of 12,613 vehicles in the quarter. The company’s current factory has capacity to produce roughly 200,000 vehicles per year. A planned plant in Georgia is expected to add about 400,000 units of annual capacity once completed. Rivian has started ramping production of the R2 model and plans lower-cost R3 and R3x variants. The company also intends to begin selling vehicles in Europe next year.

Management has warned the company will not achieve an EBITDA profit next year. Rivian’s outstanding shares have increased to about 1.26 billion from 892 million in 2022. Shortly after these results were released, the company confirmed an offering of 75 million shares to raise capital.

Analysts cited by market participants project revenue near $7 billion for this year and about $11.6 billion next year, an increase of roughly 65%. Some forecasts extend toward nearly $20 billion of annual revenue further out. Broker price targets around the stock include Needham at $23, Cowen at $20, BNP Paribas at $22 and Benchmark at $25.

Rivian is scheduled to report second-quarter earnings on July 30. Market reaction to the 75 million-share offering, the upcoming earnings report and whether production and delivery trends match expectations are likely to influence the stock’s near-term path.