Rivian ( RIVN ) reported a smaller-than-expected loss and revenue beat for Q1, giving EV investors hope after disappointing results from rivals Lucid and Fisker.
For the quarter, Rivian reported top-line revenue of $661 million versus estimates of $660.3 million, slightly less than the $663 million reported in Q4, but more than 6 times the $95 million reported in Q1 last year. In terms of earnings, the company reported an adjusted EPS loss of $1.25, beating estimates for a loss of $1.56.
The company also reiterated its annual production guidance of 50,000 units it gave during its fourth quarter earnings report. Rivian produced slightly less than 25,000 vehicles in 2021[ads1] as it suffered from component shortages and production problems at its sole plant, in Normal, Illinois.
In terms of outlook, the company still sees an adjusted EBITDA loss for the year of $4.3 billion, which is a narrowing of the $5.2 billion EBITDA loss it had in 2022. Rivian reports that it has 11.24 billion dollars in cash and cash equivalents at the end of the quarter, down from $12 billion it had at the end of the 4th quarter. But Rivian said it expected to achieve positive gross profit in 2024.
Last month, Rivian revealed it delivered 7,946 cars in Q1, topping street estimates of 7,752 according to Bloomberg. Rivian also produced 9,395 vehicles, beating estimates of 8,752 vehicles.
Earlier in March, following the release of the production guidance, a report suggested that Rivian had told employees internally that it could make as many as 62,000 vehicles this year, although a Rivia spokesperson told Yahoo Finance that the number was “taken out of context” and 50,000 remained the official guidance.
Wall Street had been on edge ahead of Rivian’s earnings. Long-term bull Alexander Potter of Piper Sandler, for example, turned bearish just a few weeks back in mid-April. Potter downgraded the stock to neutral and cut his price target to $15 from $63, writing that there are concerns about a cash crunch. Potter predicted that the company will need to raise $4 billion at some point, with investors having to foot the bill with new shares or debt issuance.
Potter still believes in Rivian’s long-term strategy of vertically integrated production, but he sees the benefits coming years from now. The question: Can Rivian, and its investors, wait that long?
Pras Subramanian is a reporter for Yahoo Finance. You can follow him further Twitter and on Instagram.
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