Electric truck manufacturer
reported a wider-than-expected quarterly loss, but more importantly maintained production estimates for the full year. The stock faltered as investors digested the news.
Rivian (ticker: RIVN) reported an adjusted loss per share of about $1.62 on $364 million in sales for the second quarter. Wall Street was looking for a loss of about $1.61 a share from about $336 million in sales.
The company burned through roughly $1.6 billion in cash. However, it was a little better than expected. Analysts estimated the company would burn through about $1.8 billion in cash.
The numbers honestly look OK. Rivian shares fell around 4% shortly after the results were announced. They came off the lows and were down 0.9% in premarket trading on Friday. Shares had a strong Thursday session ending at $38.95, up more than 4%, while the S&P 500 and Dow Jones Industrial Average both ended the day little changed.
Investors did not seem too disheartened by the results. After the decline, shares jumped as high as $39.79 in after-hours trading. The stock closed Friday at $38.60.
Investors can expect more volatility in Friday trading. Options markets suggested the stock would move about 12%, up or down, after the results were released. The shares rose 18% after the company reported figures for the first quarter.
More important than earnings at this point in the company’s life is delivery guidance. Rivian still plans to deliver around 25,000 vehicles for the whole year. That leaves about 19,300 to be sent out to customers in the last six months of the year.
Achieving this goal will require overcoming supply chain challenges, such as semiconductor shortages, that have plagued the entire automotive industry.
“As we continue to address supply chain constraints, we are encouraged by the progress we are making, which is important for us to be able to add another shift for the AGM towards the end of this quarter,” Rivian CEO RJ Scaringe said on the company’s earnings call.
A second shift means higher production rates. The electric truck startup produced 4,401 vehicles in the second quarter, up from 2,553 produced in the first quarter.
“Equally important is the continued strong demand for our products,” added the CEO. As of June 30, Rivian had around 98,000 orders for its R1T and R1S electric vehicles. That’s up from around 90,000 orders at the beginning of May.
Deliveries in the first half of 2022 totaled approximately 5,700 vehicles.
Through Thursday’s trading, the shares have fallen approx. 62% this year, while the S&P 500 and Dow have respectively fallen by approx. 12% and 8%.
Write to Al Root at email@example.com