What occurred

Rivian Automotive (RIVN 0.78%) shares have been on the transfer increased, rising double digits over the past 5 buying and selling days. That pattern continued early Thursday with shares leaping as a lot as 2.5% in early buying and selling. The inventory misplaced a few of that achieve, nonetheless, by 2:02 p.m. EST. At the moment, Rivian shares had been increased by 1.1%.

So what

The early positive aspects had been spurred by a report from analyst Jordan Levy with Truist financial institution yesterday. Levy launched outcomes from a survey his agency carried out with potential electrical car (EV) patrons that was reported by Barron’s. The outcomes confirmed Rivian is getting higher positioned to develop its enterprise on a number of fronts. However different information within the EV sector at the moment might have reminded buyers simply how tough rising that enterprise will be. 

Now what

The patron survey confirmed Rivian has continued to extend its model consciousness, and prospects seem like extra prepared than anticipated to purchase electrical pickup vehicles. Levy’s survey additionally positioned Rivian tied with Tesla for the highest electrical truck manufacturers customers had been contemplating. Each got here in forward of the worldwide conventional automakers which are starting to roll out electrical pickup truck fashions, too. 

Picture supply: Rivian Automotive.

Traders could also be contemplating its placement subsequent to Tesla as a double edged sword at the moment. That is as a result of Tesla is recalling greater than 350,000 of its automobiles for issues with its Full Self-Driving Beta software program that may very well be leading to crashes. That is a reminder that the start-up has an uphill battle to develop gross sales and attain profitability.

It should not be shocking that Rivian’s model consciousness is gaining traction, although. The corporate has persistently elevated the backlog of preorders for its R1 platform vehicles over the past yr and a half. Traders will discover out if that pattern continues when Rivian experiences its fourth-quarter outcomes on Feb. 28.