Late in the trading session on Tuesday, August 8, Tesla's rival, Rivian, unveiled its Q2 financial results. In the earnings report, Rivian increased its production outlook for the year and trimmed its loss forecast.
Rivian anticipates producing around 52,000 vehicles in 2023, surpassing its initial target of 50,000 vehicles. Market analysts interpret this boosted guidance as an indication that supply chain bottlenecks no longer plague the company.
The company mentioned significant advancements in their production lines, in-house motor manufacturing capabilities, and optimistic supply chain prospects in its revised guidance.
Steady Production Growth: Rivian's Core Strength
Consistent growth in output is paramount for Rivian to regain its momentum. Thanks to its stable production rise, the firm made waves in 2021, distinguishing itself among the numerous EV startups and potentially setting itself up as the next Tesla. However, recent challenges like supply chain bottlenecks, intensified competition, and escalating costs posed challenges.
Last month, Rivian reported producing 13,992 vehicles in the second quarter, exceeding analyst expectations, and delivered 12,640 vehicles to customers. Rivian has been producing electric delivery vehicles for its major shareholder, Amazon.
The company now forecasts an annual EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $4.2 billion, a $100 million increase from previous guidance.
Rivian's CEO mentioned that the firm, having controlled costs effectively, has sufficient funds to last until 2025.
Q2 Performance Snapshot
For Q2, Rivian's revenue surged to $1.12 billion, surpassing the market expectation of $1 billion. Adjusted earnings showed the company losing $1.08 per share, which is less than the market's predicted loss of $1.37 per share. With increased deliveries and improved efficiency in the second quarter, the loss per vehicle sold was adjusted to $31,595, a significant improvement from a loss of $67,329 in the first quarter.
Post-announcement, Rivian's stock initially climbed 3% but later experienced a slight decline.
