Rivian Gains on Promising Plans for Second Half of 2023
Rivian (RIVN:US) stock was offered higher on Wednesday after the electric vehicle (EV) maker posted a smaller-than-expected first-quarter loss.
Rivian reported an adjusted loss per share of $1.25 on revenue of $661 million. Analysts were expecting a loss per share of $1.56 on revenue of $660.3 million.
The EV maker said it recorded operating expenses of $898 million, which contributed to a negative adjusted free cash flow of $1.8 billion. This is worse than the expected $1.54 billion.
At the end of the quarter, Rivian said it had $11.24 billion of cash and cash equivalents.
On the FY outlook front, the company still expects to produce 50,000 EV units and reported an adjusted Ebitda loss of $4.3 billion. The output guidance is based on the expectations that the capacity utilization will double in 2023 and therefore “significantly lower fixed cost per vehicle.”
“We made the decision to vertically integrate our network architecture and associated electronics, full vehicle software stack and our propulsion platform; we believe this creates a long-term competitive advantage in terms of both cost and product performance,” the company said in a shareholder letter.
Rivian stock was also boosted by the analyst upgrade as CFRA moved to Sell from Strong Sell following “strong” results.
“We thought the fact it didn't lower full year guidance as Lucid and Fisker just did in tandem with their earnings releases was a positive,” analysts wrote in a note.
Since the last quarter of 2022, Congress members Daniel Goldman and Ro Khanna were both trading Rivian shares, which are down about around 14% year-to-date.
