Rivian (NASDAQ:RIVN), the Irvine-based electric vehicle producer, reported better-than-predicted revenues on Tuesday, Nov. 7. RIVN stock climbed 2% following the release of its Q3 earnings report.
The company posted revenues of $1.33 billion, surpassing the predicted $1.32 billion. Management also raised their 2023 production prediction to 54,000 vehicles from roughly 52,000.
This comes as good news to the electric truck maker. Rivian’s performance in 2023 has been somewhat rocky. The stock previously fell 23% in October after Rivian announced it would issue $1.5 billion of convertible notes, a move Wedbush analyst Dan Ives criticized as “another gut punch to investors.” A loss per share of $1.44 was 8 cents worse than expected.
Challenges also remain. Eddie Pan, a writer at InvestorPlace, warns of the upcoming debut of the Tesla Cybertruck starting Nov. 30, terming it direct competition for Rivian’s R1T and R1S pickup models. Cost control also remains an issue. Management now seeks to reduce capital expenditures to $1.1 billion to help tide the shortfall. Unsold inventories also increased from $1.3 billion to $2.5 billion, even after a $292 million writedown.
Nevertheless, Rivian remains one of the few electric vehicle startups that has raised its production outlook. With its year-to-date return performing below the S&P 500’s 15.3% at -2.3%, it will be intriguing to observe how Rivian trudges on its path to profitability.
Thomas Yeung produced this article using data from Thomson Reuters and unique generative AI prompts. These prompts help distill real-time quarterly earnings data and combine it with InvestorPlace.com’s best-in-class analysis. Our readers get a deep dive into financial results at lightning speed. These articles have been reviewed by a human editor prior to publication. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.
