What happened
Pressing the pedal to the metal as the end of the week came into view, investors reacted to a rumor about Rivian (RIVN -2.53%) and its 2023 vehicle production that began circulating late on Friday afternoon.
Shares of the electric vehicle (EV) manufacturer ended Friday's trading session 7.6% higher, having retreated slightly from their earlier rise of 11.2%.
So what
Crediting several anonymous sources, Bloomberg reported that Rivian's management informed employees that achieving vehicle production of 62,000 units was a potentially achievable feat in 2023. This report contrasted Rivian's comments earlier in the week that identified the company's production target as 50,000.
Shortly after Bloomberg broke the news, another article reported that Rivian dismissed the 62,000 figure as misleading. According to Reuters, a Rivian spokesperson said, "The 62,000 number was said in an internal meeting and taken out of context."
It's no wonder that investors reacted so strongly to a rumor about Rivian having higher vehicle production expectations than what it proposed earlier in the week. EV peers like Fisker and Polestar are finding themselves increasingly in demand from car buyers. For Rivian to raise its 2023 vehicle production expectations, investors are speculating that it is keeping pace with competitors and not losing ground like another peer, Lucid.
Now what
It's extremely common for stocks to rise when rumors run rampant, so the rise in Rivian's stock today is hardly a surprise. It's important for potential investors to recognize, though, that nothing material has changed with the company. If you were bullish or bearish on the stock this morning, there's no reason not to feel the same way this afternoon.
