Rivian Reports Wider-Than-Expected Loss

Text size

Electric-truck maker

Rivian Automotive

reported a wider-than-expected quarterly loss, but more importantly maintained its production estimates for the full year. The stock wobbled as investors digested the news.

Rivian (ticker: RIVN) reported an adjusted per-share loss of about $1.62 from $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. That, however, was a little better than expected. Analysts projected the company would burn through about $1.8 billion in cash.

The numbers, frankly, look OK. Rivian stock fell about 4% just after results were released. They came off those lows and were up 0.3% in premarket trading Friday. Shares had a strong Thursday session closing at $38.95, up more than 4%, while the S&P 500 and Dow Jones Industrial Average both finished the day little changed.

Investors can expect volatility in the stock on Friday. Options markets implied the stock would move about 12%, up or down, after results were released. Shares jumped 18% after the company reported first quarter numbers.

More important than even earnings at this point in the company’s life is delivery guidance. Rivian still plans to deliver about 25,000 vehicles for the full year. That leaves roughly 19,300 to be shipped out to customers in the final six months of the year.

Achieving that goal will require overcoming supply-chain challenges, such as a lack of semiconductors, that have plagued the entire auto industry.

“While we continue to manage supply chain constraints, we are encouraged by the progress we are making, which is important for us to be able to add a second shift for general assembly towards the end of this quarter,” said Rivian CEO R.J. Scaringe on the company’s earnings conference call.

A second shift means higher production rates. The electric-truck start-up produced 4,401 vehicles in the second quarter, up from 2,553 produced in the first quarter.

“Equally as important is the continued strong demand for our products,” added the CEO. As of June 30, Rivian had about 98,000 orders for its R1T and R1S electric vehicles. That is up from about 90,000 orders as of early May.

Deliveries in the first half of 2022 totaled about 5,700 vehicles.

Through Thursday trading, shares have fallen about 62% this year, while the S&P 500 and Dow have declined about 12% and 8%, respectively.

Write to Al Root at [email protected]