June 13, 2024

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Rivian has good and bad news at the end of a rough day for EV stocks

Rivian has good and bad news at the end of a rough day for EV stocks

New York
CNN Business

Electric truck maker Rivian delivered a mixed bag to investors in its third-quarter earnings report, after a tough day for its shares and those of other electric car makers.

On the other hand, Rivian reported a lower-than-expected loss of $1.4 billion, less than the $1.7 billion loss expected by analysts polled by Refinitiv. It said net bookings rose to 114 thousand from 98 thousand in the second quarter report.

But its $536 million in revenue, while up 47% from second-quarter revenue, fell short of analysts’ expectations of $552 million in revenue.

The rise in bookings was notable after electric car maker Lucid said late Tuesday that the number of reservations for its electric vehicles had fallen to 34,000 from 37,000 in the previous quarter’s report.

I sent that news to Lucid

Shares fell 17% on the day and helped lower shares of Rivian and Chinese electric car maker Nio

at 12% per hour in normal US trading hours.

Leading electric vehicle manufacturer Tesla

Shares also fell 7%, although that could have been more influenced by the news that CEO Elon Musk got Tesla sold nearly $4 billion

(TSLA) since then Deal closed to buy Twitter two weeks ago.

Rivian also reaffirmed its goal of ramping up production to build 25,000 cars this year, a target as upward as other automakers, including Tesla, have had to. Reduce sales targets for the year due to supply chain problems.

In the first three quarters of this year, Rivian built just over 14,000 vehicles, so hitting the 25,000 production target for this year means a 45% increase in production in the final three months of the year compared to the 7,400 it built last year. completed quarter.

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But while it says it is still on target to meet that 25,000 target for 2022, it has pushed back the target date for availability of its smaller R2 model to 2026. It previously expected a launch of that model in 2025.

Rivian shares swayed heavily on the back of the report in after-hours trading, first up 3%, then pulling back to trade slightly lower, and then up 5%.