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The Rivian R1S will begin shipping to customers in just a few months.
Courtesy of Rivian
Electric truck inventor
Rivian Automotive
reported a broader quarterly loss than expected, but more importantly, maintained its full-year output estimate. Stocks are wobbling while investors prepare for the news.
Rivian (code: RIVN) report adjusted loss per share of about $1.62 from revenue of $364 million in the second quarter. Wall Street is looking for a loss of about $1.61 a share from revenue of about $336 million.
The company burned through about $1.6 billion in cash. However, that was a bit better than expected. Analysts predict the company will burn through about $1.8 billion in cash.
The numbers, to be honest, look fine. However, Rivian stock fell about 4% shortly after the results were announced. Still, the stock had a strong Thursday session closing at $38.95, up more than 4%, while S&P 500 and Dow Jones Industrial Average both ended the day little changed.
Investors didn’t seem too disheartened with the results. After falling, the stock rallied to as high as $39.79 in after-hours trading. Shares were steady at $38.30, down about 1.7% from Thursday’s close.
Investors can expect more volatility in Friday’s trading. The options market implies that the stock will rise about 12%, up or down, after the results are announced. Shares rose 18% after the company reported first-quarter numbers.
More important than earnings at this point in the company’s lifecycle are delivery instructions. Rivian still plans to deliver about 25,000 vehicles for the whole year. That leaves about 19,300 units to be delivered to customers in the second half of the year.
Achieving that goal requires overcoming supply chain challenges, such as semiconductor shortages, that plague the entire auto industry.
“While we continue to manage supply chain constraints, we are encouraged by the progress we are making, it is important for us to be able to add a second shift to the representative. board at the end of this quarter,” Rivian CEO RJ Scaringe said on the company’s earnings conference call.
The second change means higher production rates. Electric truck starter is produced 4,401 vehicles in the second quarter, up from 2,553 produced in the first quarter.
The CEO added: “It is equally important that demand continues to grow strongly for our products. As of June 30, Rivian had around 98,000 orders for its R1T and R1S electric vehicle models. This is up from about 90,000 orders as of early May.
Deliveries in the first half of 2022 reached about 5,700 vehicles.
Through Thursday trading, the stock is 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]
