RIVN Stock Alert: Rivian Rises on Steady EV Production Targets

  • Rivian (RIVN) posted Q2 revenue of $364 million, beating expectations.
  • Adjusted EPS tallied in at a loss of $1.62, beating estimates by one cent.
  • Shares of RIVN stock are down about 60% year-to-date.
RIVN stock - RIVN Stock Alert: Rivian Rises on Steady EV Production Targets

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Rivian (NASDAQ:RIVN) stock isin the green after the company posted a mixed second-quarter earnings report. First, revenue came in at $364 million, beating the consensus analyst estimate of $337.5 million by almost 8%. The revenue was attributed to the delivery of 4,467 vehicles during the quarter. Additionally, Rivian produced 4,401 vehicles in that time period. On top of that, the electric vehicle (EV) company reported an adjusted earnings per share loss of $1.62, beating the analyst estimate by one cent.

CEO RJ Scaringe added:

In addition to production ramp and key technologies, we remain focused on scaling and enhancing our go-to-market capabilities and service offerings, while also optimizing costs and operating expenses across the business as we drive towards profitability.

However, Rivian now expects its full-year adjusted loss before income, taxes, depreciation and amortization to be $5.45 billion, up from its previous guidance of $4.75 billion. The losses reflect a production ramp-up, inflation, supply chain inefficiencies, and higher shipping costs. During Q2, losses ballooned to $1.7 billion, almost triple the loss of $580 million reported a year ago.

Most importantly, Rivian maintained its full-year production guidance. Let’s get into the details.

RIVN Stock: Rivian Maintains Full Year Production Guidance

Full-year production guidance remains at 25,000 vehicles. During the company’s initial public offering roadshow, it forecasted 50,000 vehicles for 2022. The guidance was lowered during Q1 due to widespread supply chain issues. The same supply problems have hampered competitors, such as Lucid (NASDAQ:LCID) as well.

Meanwhile, the company’s preorders for R1 vehicles rose to 98,000, up from over 90,000 preorders as of May 11. The preorders do not include a 100,000 electric delivery van (EDV) order from Amazon (NASDAQ:AMZN) which is set to be fulfilled by 2030. Rivian has already delivered EDVs to Amazon in over a dozen cities. Cumulatively, EDVs have delivered over 430,000 packages.

Finally, the company has $15.5 billion of cash and cash equivalents on hand as of June 30, down from $17.7 billion during Q1. Management stated that the cash will be able to sustain operations until 2025. That year, Rivian plans on launching R2, a more affordable vehicle platform, at its new factory in Georgia. As a result, investors should also be assured of no equity raises in the near term. Another bright spot was that the company now expects $2 billion in capital expenditures this year, down from the previous guidance of $2.6 billion.

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.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


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