Rivian Posts Narrower-Than-Expected Loss, Lifts 2023 Production Guidance
Rivian Automotive (NASDAQ: RIVN) reported its second quarter results on Tuesday, beating analysts’ expectations on revenue and narrowing its loss. The Amazon.com (NASDAQ: AMZN)-backed EV maker delivered 12,640 vehicles in the quarter, up 59% from the first quarter. Rivian also produced 13,992 vehicles in the quarter, up from 9,395 in the first quarter.
Rivian’s revenue of $1.12 billion was above analysts’ expectations of $1 billion. The company’s loss of $1.19 billion was narrower than the $1.7 billion loss it reported in the same quarter last year. Rivian’s adjusted loss of $881 million was also better than analysts’ expectations of $1.41 per share.
Rivian CEO RJ Scaringe said the company’s results reflect its focus on achieving profitability through economies of scale, cost reductions, and improved efficiency. He also assured investors that Rivian has enough liquidity to fund its operations through 2025.
Rivian raised its 2023 production guidance to 52,000 vehicles, up from 50,000 vehicles. The company also lowered its full-year capital expenditure guidance to $1.7 billion from $2 billion.
Rivian’s results come at a time when the EV market is facing a number of challenges, including rising inflation and supply chain disruptions. However, Rivian appears to be well-positioned to weather these challenges. The company has a strong balance sheet and a loyal customer base. It is also one of the few EV makers that is currently producing vehicles at scale.
Rivian’s success could help to legitimize the EV market and attract more investors and consumers to the space. The company’s success could also put pressure on Tesla (NASDAQ: TSLA), the leading EV maker, to improve its production and efficiency.
Overall, Rivian’s second quarter results were positive. The company is on track to achieve its production goals and is well-positioned to be profitable in the near future. Rivian’s success could help to accelerate the adoption of EVs and make the EV market more competitive.