Why Rivian stock is soaring today

Even with some recent recovery, the electric-vehicle stock still trades down roughly 60.5% year to date.

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A row of Rivians cars.

Image source: Rivian Automotive

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Rivian (NASDAQ: RIVN) are making big gains in today's trading. The electric vehicle (EV) company's stock was up roughly 7.5% as of 3 p.m. EDT Wednesday. Meanwhile, the S&P 500 index climbed roughly 1%, and the Nasdaq Composite index was up roughly 1.9%. 

Growth-dependent stocks have seen volatile trading recently, and the market has seen big swings this week. While there doesn't appear to be any fresh, business-specific news driving the company's share price higher, Rivian is benefiting from an uptick in bullish sentiment lifting the broader market. 

So what

After a day of dramatic sell-offs on Monday, yesterday's trading delivered some rebound momentum, and the recovery has been even stronger Wednesday. Rivian published an update last week announcing that it had produced 2,553 electric vehicles in its recently completed first quarter and that it was on track to meet its goal of delivering 25,000 vehicles this year. The combination of positive momentum for the market today and recent indications that the business is making encouraging progress are prompting big gains for the stock. 

Now what

Rivian's business has just recently started ramping up significantly, with the $54 million in sales that it posted in last year's fourth quarter pushing full-year revenue to $55 million. Investors won't have to wait long to get a more detailed look at Rivain's business operations and outlook. The company recently announced that it will be publishing its first-quarter earnings results and hosting a conference call after the market closes on May 11.  

The company now has a market capitalization of roughly $37 billion and is valued at approximately 19 times this year's expected sales. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

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