Rivian Automotive, the Irvine, Calif.-based automaker known for its production of electric trucks, sedans, and commercial vans, reported its Q2 results on Tuesday, causing its stock to fade after hours and erase the gains it had made earlier in the day. The company’s adjusted loss per share came in at $1.08, while its revenue tripled to reach $1.12 billion.
Despite the loss, Rivian’s Q2 results exceeded expectations set by analysts. They had anticipated an adjusted loss per share of $1.41, a significant improvement from the previous year’s loss of $1.62 per share. FactSet had also predicted a 177% increase in revenue, estimating around $1.02 billion. Moreover, Rivian experienced a 50% increase in production and a 60% increase in deliveries compared to the previous quarter.
Earlier in July, Rivian had already impressed with its second-quarter delivery report, which showcased the company’s delivery of 12,640 vehicles as opposed to the estimated 11,000 deliveries by Wall Street analysts. As a result, Rivian raised its full-year production guidance to 52,000 vehicles, surpassing its initial estimate of 50,000 vehicles.
Rivian has set its sights on achieving a positive gross profit by 2024. However, it does expect an adjusted EBITDA loss of $4.2 billion for fiscal 2023. The company also revised its capital expenditures forecast for 2023 to $1.7 billion after shifting the timing of certain expenses to the following year. This adjustment comes after previously guiding $2 billion in capital expenditures for the current year.
In a deal announced on June 20, Rivian revealed that it signed an agreement to utilize Tesla’s supercharging stations starting in 2024. Ford and General Motors have also entered into similar agreements with Tesla.
Rivian stock, traded under the ticker RIVN, experienced a decline of 2.2% following the release of its Q2 report. This fall reversed the stock’s 2.1% gain during market hours. On Monday, shares of Rivian had retreated 3.9% to $24.28. Despite this recent setback, RIVN stock has shown strong performance throughout the year, rising by nearly 34%. However, it has experienced a decline of nearly 14% in August after a strong three-month rally.
As Rivian works to establish itself among other notable players in the electric vehicle market, such as Li Auto, Tesla, and BYD, the company’s performance in the coming quarters will be closely watched by investors and industry analysts.
In related news, investors can consult the Earnings Calendar to keep track of other companies scheduled to report their financial results soon. Additionally, there are several recommended articles available that provide insights on the best stocks to buy and watch, top-rated IPOs, big caps, and growth stocks. By utilizing tools like MarketSmith, investors can easily locate the latest stocks hitting buy zones, simplifying the search for potential winners in the stock market.