By Claudia Assis
Rivian's better-than-expected results cap difficult first quarter for EV startups
Shares of Rivian Automotive Inc. rose nearly 6% in the aftermarket Tuesday after the electric-vehicle maker reported a narrower quarterly loss and kept intact its guidance for the year.
Rivian (RIVN) lost $1.35 billion, or $1.45 a share, in the first quarter, compared with a loss of $1.6 billion, or $1.77 a share, in the year-ago period. Adjusted for one-time items, Rivian lost $1.25 a share.
Revenue jumped to $661 million, from $95 million a year ago, when it delivered fewer than 2,000 vehicles. Analysts polled by FactSet expected Rivian to report an adjusted loss of $1.62 a share on sales of $664 million.
Rising production in the quarter meant that Rivian was able to spread out factory fixed costs, Chief Executive RJ Scaringe said on a call with analysts after the report. That pickup in pace also was "crucial" to realizing the long-term structural-cost advantages of the company's vertically integrated strategy, he said.
"While challenges remain, we've become a stronger, more agile company through this process," Scaringe said.
Rivian reaffirmed its production outlook of 50,000 vehicles for the year, saying that was based on "our latest understanding of the supply-chain environment."
"We continue to believe the supply chain will continue to be the main limiting factor of our (Normal, Ill.) facility output," the Rivian executives said in a letter to shareholders. "Our team continues to work on the introduction of new engineering design changes and key technologies which will take effect during the second half of 2023 to help mitigate anticipated supply-chain constraints."
Chief Financial Officer Claire McDonough said on the call that Rivian remained "confident" that it has enough cash to fund operations through 2025 and that it has strengthened its balance sheet in preparation for the launch of a cheaper, new-generation EV platform, the R2, in 2026.
See also:Fisker cuts production guidance, posts wider loss than expected
Rivian's intact guidance contrasted with outlook cuts for Fisker Inc. (FSR) and Lucid Group Inc. (LCID) this week.
Earlier Tuesday, Fisker reported a wider-than-expected first-quarter loss and said it expects to produce 32,000 to 36,000 vehicles in 2023, including 1,400 to 1,700 in the second quarter.
When it reported fourth-quarter earnings in February, Fisker guided for production of "up to 42,400 units" in the year.
And late Monday, Lucid Group reported steeper quarterly losses and cut its guidance for the year to "more than" 10,000 vehicles, from a previous guidance of between 10,000 and 14,000 vehicles.
Don't miss:Lucid stock drops 9% after EV startup dials down production guidance
Shares of Rivian have lost 40% in the past 12 months, contrasting with gains of about 3.3% for the S&P 500 index . The stock is down 16% so far this year, versus an advance of around 7.4% for the S&P 500.
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May 09, 2023 17:31 ET (21:31 GMT)
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