Rivian (RIVN) Raises EV Production Guidance As Revenue Surges; Lucid (LCID) Lowers 2023 Outlook
Rivian, the maker of premium electric vehicles, raised its electric vehicle (EV) production guidance for the full year after a surge in third-quarter revenue that beat expectations late Tuesday. On the other hand, Lucid, a competitor in the high-end EV market, lowered its 2023 production outlook after experiencing a worse-than-feared decline in Q3 revenue.
Rivian’s stock rose in extended trading as the company reported a narrower-than-expected net loss and revenue that exceeded analyst estimates. The company lost $1.19 per share, less than the anticipated $1.34, and revenue surged 149% year over year to $1,337 million, slightly above views. Rivian also reported that it had produced 16,304 electric vehicles and delivered 15,564 in the third quarter.
The startup announced that it would be expanding its customer base to allow more purchasers for its commercial electric vans beyond Amazon (AMZN), which remains a key customer. Furthermore, Rivian stated that it will be increasing its 2023 production guidance to 54,000 electric vehicles and improving its EBITDA guidance to negative $4 billion.
In contrast, Lucid experienced a disappointing third quarter, reporting a revenue decline of nearly 30% to $137.8 million, which was far worse than expected. The company also announced a reduction in its 2023 production guidance, citing the need to prudently align production with deliveries.
As a result, Lucid’s stock tumbled in late trading, while Rivian’s stock gained 3.3%. Rivian’s stock, which has been relatively volatile, remains under the 50-day and 200-day moving averages after a significant loss in value in October.
The struggles of both Rivian and Lucid highlight the challenges faced by EV startups in the capital-intensive business of making electric vehicles. The news of Rivian’s improved guidance comes amid mounting fears of a global EV slowdown following warnings on demand from auto giants, including Tesla (TSLA). Tesla stock rose Tuesday, with CEO Elon Musk’s plans for a cheaper EV in Germany and a potential future Mexico plant.