UPDATED 5:23 P.M.
(Reuters) – Rivian Automotive on Tuesday raised its full-year production forecast and its chief executive said the electric vehicle maker has enough money to last it through 2025 as it keeps a lid on costs.
Shares in Rivian, which initially rose 3% after results were published, were up 1% in choppy extended trading. The stock has soared nearly 80% in the past three months.
The Amazon-backed company, like other EV rivals has been burning through cash to ramp up production and keep up with market leader Tesla, which has slashed prices.
Rivian, though, has fared better than smaller firms as demand for its pickup trucks and sport-utility vehicles has risen despite high borrowing costs for consumers.
The competition and a tight funding environment led two EV firms – Lordstown Motors and Proterra – to file for bankruptcies in June and this week, respectively.
In an interview with Reuters, Rivian CEO RJ Scaringe said his company was in a far stronger financial position.
“The cash balance that we have today takes us through 2025,” Scaringe said. “We will be very thoughtful and intentional on how we secure additional capital to support the growth of the R2 program,” he added, referring to the company’s upcoming lineup of smaller, cheaper cars.
Rivian’s cash balance fell by nearly $2 billion in the second quarter to $9.26 billion.
After struggling to ramp up production because of a shortage of parts such as power semiconductors, Rivian has moved to building in-house Enduro powertrains to cut costs and reduce dependency on suppliers.
The company on Tuesday posted second-quarter revenue of $1.12 billion, topping Wall Street estimates of $1 billion, according to Refinitiv data and posted a smaller quarterly loss. It said it expected to make 52,000 vehicles in the year, up from its previous forecast of 50,000 units.
Second-quarter gross margins improved to a negative 37%, compared with negative 81% in the first quarter, and the company now expects its full-year operating loss to shrink by $100 million from its prior guidance to $4.2 billion.
It delivered 12,640 vehicles in the April-June period, beating analysts’ estimates of 11,000.
As the company grew deliveries and built efficiencies in the June quarter, it posted an adjusted loss of $31,595 per vehicle sold, compared with a loss of $67,329 in the previous three months.
(Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Shinjini Ganguli and Jamie Freed)
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(Reuters) -Rivian Automotive on Tuesday raised its full-year production forecast after it beat second-quarter revenue expectations on higher deliveries.
The electric-vehicle maker, which posted a smaller quarterly loss, expects to make 52,000 vehicles in the year, up from its previous forecast of 50,000 units.
Shares of Rivian, however, dropped 2.2% in choppy extended trading after the company’s cash balance fell nearly $2 billion in the reported quarter to $9.26 billion.
Still, Rivian’s improved production forecast and narrower losses are a stark contrast to other small electric vehicle firms, such as Fisker and Nikola that struggled in a tight funding environment and after Tesla’s price cuts to stoke demand.
The unfriendly economic climate has already claimed its first two EV startup victims, with Lordstown Motors filing for bankruptcy protection in June and Proterra following suit on Monday.
Meanwhile, Rivian said its expects a smaller operating loss in 2023.
It saw a major improvement in its second-quarter gross margins, which stood at negative 37%, compared with negative 81% in the first quarter, and the company now expects its full-year operating loss to shrink by $100 million to $4.2 billion.
The Amazon.com-backed company expects demand for its pickup trucks and sport-utility vehicles to remain stable even in the face of high borrowing costs.
It delivered 12,640 vehicles in the April-June period, beating analysts’ estimates of 11,000, a positive sign for the company that had struggled to ramp up production due to supply chain issues fueled by the pandemic and Russia’s invasion of Ukraine among others.
Analysts believe that its efforts to build its own drive unit, which comprises motors and electronic components, with the aim of lowering dependence on suppliers, will help the company stand out among smaller EV startups.
Rivian’s revenue for the April-June period stood at $1.12 billion, compared with Wall Street estimates of $1 billion, according to Refinitiv data.
But as the company grew deliveries and built efficiencies in the June-quarter, it posted an adjusted loss of $31,595 per vehicle sold, compared with a loss of $67,329 in the previous three months.
(Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Shinjini Ganguli)
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