Rivian lifts 2023 production target, beats Q2 revenue view on higher deliveries

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 (NASDAQ:)’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 (NASDAQ:).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.

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