Rivian Automotive Inc (RIVN.O) exceeded analysts’ expectations for quarterly revenue by selling more high-end electric vehicles in Q1, while maintaining its production forecast of 50,000 cars for the year.
The company also reduced costs during the January-March period, and its positive results, following production cuts by Lucid Group Inc (LCID.O) and Fisker Inc (FSR.N), boosted investor confidence, leading to a 3% increase in shares during extended trading.
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Rivian plans to offset any supply chain issues in the second half of the year by increasing production of its in-house Enduro powertrains, enabling it to reach its annual production target.
The company did not disclose details about pre-orders at the end of the quarter due to concerns about demand, which has been affected by higher borrowing costs and aggressive price cuts by industry leader Tesla Inc (TSLA.O).
Rivian’s R1T pickup trucks start at $73,000, while the R1S SUV is priced at $78,000. In March, the Amazon-backed company announced it would sell $1.3 billion in convertible green bonds due in 2029 to strengthen its cash balance, but analysts view this as a temporary solution.
Although the company reported a net loss of $1.35 billion for Q1, it was an improvement from the $1.59 billion loss incurred in the same period last year.
Rivian’s cash and cash equivalents at the end of Q1 were $11.24 billion, a decrease from the preceding three-month period when it was $11.57 billion. Refinitiv data shows that the company’s revenue for the quarter ended March 31 was $661 million, surpassing Wall Street’s estimate of $652.1 million.
Source: Reuters
