This morning, Rivian (NASDAQ:RIVN) hit a new all-time low of $22.45 as both the S&P 500 and Nasdaq Composite shed more than 3%. Although some of the pain came as part of a broader selloff, today also marked Rivian’s initial public offering (IPO) lockup expiration for early investors and insiders. Roughly 800 million shares will be available to sell as a result of the lockup expiration.
Over the weekend, Ford (NYSE:F) announced that it would be selling 8 million shares priced at $26.90. Before the sale, Ford owned 102 million shares, or 12% of all shares.
Another large stakeholder of RIVN stock is Amazon (NASDAQ:AMZN). Investors learned that JPMorgan (NYSE:JPM) is selling 13 million to 15 million shares of Rivian priced at $26.90 as well. However, Amazon has not confirmed that this sale corresponds with its holdings. The e-commerce giant last reported owning about 158 million shares, or an 18% stake.
After Monday’s bloodshed, there is yet another catalyst on the horizon that will certainly affect Rivian.
RIVN Stock: Rivian to Report Earnings on May 11
The electric vehicle (EV) company has confirmed that it will report first-quarter earnings on May 11 after the market close. During its last earnings report, the company stated that it had 83,000 reservations for its R1T and R1S models, as well as a 100,000-vehicle-preorder from Amazon. For 2022, Rivian expects to produce 25,000 vehicles, down from an earlier forecast of 50,000 vehicles. As of the end of March, Rivian had produced 3,568 vehicles, so investors expect a large ramp up in production. Any 2022 guidance for less than 25,000 vehicles produced could send RIVN stock plunging.
As of the end of 2021, Rivian had a healthy $18.4 billion of cash on hand. In March, the company stated that it expects to burn through about $8 billion of cash by the end of 2023.
For Q1, analyst expect revenue of $130.5 million and an earnings per share (EPS) loss of $1.44. For Q2 guidance, analysts expect $338.9 million of revenue and an EPS loss of $1.45. Guidance will be a major factor to Rivian’s earnings report, as investors will want to hear how supply chain issues will affect the company moving forward.
EV competitor Lucid (NASDAQ:LCID) reported earnings last week, which may give a few clues on how Rivian’s earnings will turn out. Lucid now has 30,000 reservations for its Air models, and an up-to-100,000 vehicle order from Saudi Arabia. In addition, the company maintained its 2022 production guidance of between 12,000 and 14,000 vehicles. Still, CFO Sherry House cautioned that “any extended disruptions could result in an impact to our production forecast.”
On the date of publication, Eddie Pan held a long position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
