EV maker Rivian beats revenue estimate, expects wider operating loss
2022.08.12 00:58
FILE PHOTO: The logo of startup Rivian Automotive’s is seen at the electric vehicle factory in Normal, Illinois, U.S. April 11, 2022. REUTERS/Kamil Krzaczynski
By Akash Sriram and Paul Lienert
(Reuters) -Electric-vehicle maker Rivian Automotive Inc on Thursday forecast a wider operating loss for the year, but shares rose 1% in after-hours trade as the company beat quarterly revenue estimates.
Rivian said it now expects to post an adjusted loss before interest, taxes, depreciation and amortization of $5.45 billion, compared with a previously projected loss of $4.75 billion.
Still, Rivian built fewer than 7,000 vehicles in the first half, but reaffirmed its full-year target of 25,000.
The Irvine, California-based company said it plans to add a shift to its Normal, Illinois, assembly plant by the end of the third quarter, but also noted that it expects higher raw material costs and other supply-chain challenges to continue.
In the second quarter ended June 30, the EV maker delivered 4,467 vehicles, up from 1,227 in the previous three months.
At the end of June, Rivian said it had unsold inventory worth $655 million.
The company said it has received about 98,000 unfilled pre-orders for its R1S SUV and R1T pickup truck.
Revenue was $364 million in the second quarter, compared with the $337.5 million expected by analysts, according to IBES data from Refinitiv.
Net loss widened to $1.71 billion, from $580 million a year earlier.
Rivian burned through $1.2 billion in the quarter, leaving it with $14.9 billion in cash – enough to cover the $5 billion earmarked to open its second U.S. assembly plant, outside Atlanta, in 2025, the company said.
To help conserve cash as it attempts to ramp up production, Rivian said it has delayed some programs to 2023. Capital expenses in the quarter fell to $359 million, from $431 million a year earlier when the company was readying the Illinois plant for the start of production.
