Rivian Automotive Inc (NASDAQ:RIVN) reaffirms annual production forecast

Rivian Automotive Inc (NASDAQ:RIVN) stock rallies 21.55% (As on May 12, 11:33:47 AM UTC-4, Source: Google Finance) after the company reaffirmed its annual production forecast of 25,000 units, saying ongoing supply chain disruptions and material costs prevented the electric vehicle maker from reaching its original target of 50,000 vehicles. Rivian had halved its 2022 forecast in March as it struggled to secure the chips needed to make its R1T pickup truck, R1S SUV and electric delivery van for Amazon.com Inc. Rivian delivered 1,227 vehicles in the first quarter, up from 909 units in the previous quarter. It said it has received more than 90,000 pre-orders in the United States and Canada for its R1S SUV and R1T pickup truck as of May 9. Its net loss widened to $1.59 billion from $414 million a year earlier. Operating activities in the first quarter burned around $1 billion in net cash, and Rivian last quarter said it continued to expect negative gross margins throughout 2022.

RIVN in the first quarter of FY 22 has reported the adjusted loss per share of $1.43, beating the analysts’ estimates for the adjusted loss per share of $1.50. The company had reported the adjusted revenue of $95 million in the first quarter of FY 22, missing the analysts’ estimates for revenue of $130.5 million, according to Refinitiv data. Total production for Q1 2022 was 2,553 vehicles. The company generated negative gross profit of $(502) million for Q1 2022. The company experienced a loss from operations in Q1 2022 totaling $(1,579) million, as compared to $(410) million in Q1 2021. The net loss for Q1 2022 was $(1,593) million as compared to $(414) million for the same period last year

Meanwhile, Rivian, which currently operates a single plant in Illinois, is planning to invest $5 billion to build a new production plant in Georgia. Rivian aimed to open that plant in late 2024, but Rivian said it was looking at a 2025 launch date. Rivian said it had enough cash on hand to open the Georgia factory. That was a “big plus,” said Redburn analyst Charles Coldicott, adding that analysts had expected the company to raise additional capital in 2024. The company’s top priority for 2022 remains ramping production in our Normal, Illinois production facility. During a pandemic and in the context of a highly constrained global supply chain, the company had introduced four different models across two vehicle platforms and produced ~5,000 vehicles since the start of production.

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