Rivian Automotive rose 5% in pre-market trading! Maintains full-year production target, surpassing Lucid and Fisker.
Rivian Automotive is still maintaining its annual production target of 50,000 vehicles, which is about twice the production target for 2022. This is very important. In contrast, Lucid and Fisker have both lowered their production expectations for 2023.
Rivian Automotiven Automotive's partial financial indicators for the first quarter of the US stock electric vehicle company were lower than expected, but the full-year production guidance remained unchanged. This sets it apart from some of its electric vehicle startup peers, which is already enough for investors.
In pre-market trading, Rivian Automotiven Automotive rose more than 5%.
Loss Narrowing
Rivian Automotiven Automotive announced on Tuesday that according to Generally Accepted Accounting Principles (GAAP), its first-quarter revenue was US$661 million, and its net loss was US$1.35 billion, a year-on-year decrease of 15%, with a loss per share of US$1.45.
FactSet data shows that Wall Street expects revenue of US$664 million and a loss per share of US$1.79.
The net loss was lower than expected, but the free cash flow was US$1.8 billion.
Maintain Annual Production Target
Rivian Automotiven Automotive produced 9,395 electric vehicles in the first quarter, delivered 7,946, which was lower than the previous quarter, but the company still maintains its annual production target of 50,000 vehicles, which is about twice the production in 2022.
This is very important. In contrast, Lucid and Fisker have both lowered their 2023 production expectations.
Rivian Automotiven Automotive had revenue of US$663 million in the fourth quarter of last year and delivered 8,054 cars.
Analysts Lower Target Price
Costs are also critical for the company and investors. The company also maintains guidance for comprehensive operating expenses and capital expenditures.
Rivian Automotiven Automotive expects to invest approximately US$6.3 billion in business construction by 2023, and Wall Street expects Rivian Automotiven Automotive to use US$6 billion throughout the year.
CEO R.J. Scaringe told analysts on the earnings conference call that the company is still working to reduce costs and simplify production processes. Cost reduction is something that investors can look forward to in the future. Rivian Automotive had about $12 billion in cash at the end of this quarter, similar to its cash balance at the end of 2022, but Rivian Automotive issued bonds this quarter to raise additional funds.
Truist analyst Jordan Levy lowered Rivian Automotive's target price from $44 per share to $28 per share on Tuesday morning, but maintained a buy rating on the stock.
