Rivian Automotive Inc (NASDAQ:RIVN) stock rose 0.98% (As on August 12, 11:42:31 AM UTC-4, Source: Google Finance) after the company beaten revenue estimates and posting a smaller-than-expected loss in the latest quarter. Rivian reaffirmed its delivery estimates for the year but said it expects a larger loss than anticipated as it grapples with supply chain constraints. The company made 4,401 electric utility vehicles during the quarter, compared to 2,553 in the first. The EV company reiterated its annual production forecast of 25,000 units and said it would add a second shift of vehicle assembly to its Illinois plant by the end of the third quarter. Demand for electric SUVs and trucks is increasing, Rivian said, claiming a backlog of preorders that reached 98,000 at the end of June. The company said it has received about 98,000 pre-orders for its R1S SUV and R1T pickup truck. Net loss widened to $1.71 billion, from $580 million a year earlier. The company remains focused on fully ramping our 150,000 installed annual units of capacity in Normal, Illinois is expected to meet the strong demand for the products. The upcoming introduction of the new Lithium Iron Phosphate (“LFP”) battery, updated electronics, and single motor drive unit, known as “Enduro,” play an important role in improving affordability and contributing to attractive long-term gross margins.
Meanwhile, supply chain continues to be the limiting factor of the production; however, through close partnership with the suppliers the company is making progress. The company expects to be able to add a second shift for vehicle assembly towards the end of the third quarter.
RIVN in the second quarter of FY 22 has reported the adjusted earnings per share of $1.62, missing the analysts’ estimates for the adjusted earnings per share of $1.63. The company had reported the adjusted revenue of $364 million in the second quarter of FY 22, beating the analysts’ estimates for revenue of $337.5 million.
The company now forecasts an EBITDA loss of US$5.4bn for the full year, wider than the US$4.75bn loss it guided to in May, and expects to capital expenditure to reach US$2bn for the full year, lower than its US$2.6bn previous guidance.
Additionally, in July 2022, Amazon announced the rollout of its custom EDVs to locations around the country, including Baltimore, Chicago, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle, and St. Louis.