Electric Truck Manufacturer
reported a larger-than-expected quarterly loss but, most importantly, maintained its production estimates for the full year. The stock wobbled as investors digested the news.
Rivian (ticker: RIVN) reported an adjusted loss per share of approximately $1.62 from second-quarter revenue of $364 million. Wall Street was looking for a loss of about $1.61 a share from about $336 million in sales.
The company burned about $1.6 billion in cash. However, that was slightly better than expected. Analysts predicted the company would burn about $1.8 billion in cash.
Frankly, the numbers look good. Shares of Rivian fell about 4% just after the results were announced. They came off those lows and fell 0.9% in premarket trading on Friday. Shares had a strong Thursday session closing at $38.95, up more than 4%, while the S&P 500 and Dow Jones Industrial Average both ended the day, little changed.
Investors didn’t seem too discouraged by the results. After the dip, the stock bounced back to $39.79 in after-hours trading. The stock stabilized at $38.60 on Friday.
Investors can expect more volatility in Friday trading. Options markets implied that the stock would move up or down about 12% after the results were announced. Shares rose 18% after the company reported first-quarter figures.
More important than even revenue at this point in the company’s life is delivery guidance. Rivian still plans to deliver about 25,000 vehicles for the full year. That leaves about 19,300 to be shipped to customers in the last six months of the year.
To achieve that goal, supply chain challenges must be overcome, such as a lack of semiconductors, which have plagued the entire automotive industry.
“As we continue to manage supply chain constraints, we are encouraged by the progress we are making, which is important for us to be able to add a second shift for the AGM by the end of this quarter,” said Rivian CEO RJ Scaringe on the company’s earnings conference call.
A second shift means higher production speeds. The electric truck start-up produced 4,401 vehicles in the second quarter, compared to 2,553 in the first quarter.
“Equally important is the continued strong demand for our products,” added the CEO. As of June 30, Rivian had approximately 98,000 orders for its R1T and R1S electric vehicles. That’s an increase of about 90,000 orders from early May.
Deliveries in the first half of 2022 totaled approximately 5,700 vehicles.
In Thursday trading, stocks are down about 62% this year, while the S&P 500 and Dow are down about 12% and 8%, respectively.
Write to Al Root at [email protected]