Rivian stock jumps as the EV automaker says demand remains high and production is on track

Earnings

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Production of electric Rivian R1T pickup trucks on April 11, 2022 at the company’s plant in Normal, Ill.
Michael Wayland / CNBC

Electric vehicle maker Rivian Automotive on Wednesday maintained its 2022 production target, saying it’s still on track to build 25,000 vehicles this year, as it reported a jump in reservations and a first-quarter loss that was slightly narrower than Wall Street had expected.

Here are the key numbers from Rivian’s first-quarter earnings report:

  • Loss per share: $1.43, narrower than Wall Street’s $1.44 consensus estimate per Refinitiv.
  • Revenue: $95 million, versus $130.5 million per Refinitiv consensus estimates.
  • Net loss: $1.59 billion.
  • Vehicle reservations: Over 90,000.

Rivian said it now has over 90,000 reservations for its R1-series truck and SUV, up from 83,000 as of its last update in March. That total includes about 10,000 new reservations made since it raised prices at the beginning of March, it said, at an average purchase price of over $93,000.

But it may be a while before Rivian fills those most recent orders. The company said it has lost “approximately a quarter” of its planned production since the end of March due to tight supplies of some critical components, including semiconductor chips. Rivian’s Illinois factory will have a capacity of up to 150,000 vehicles per year once its production line is running at full speed.

Through May 9, Rivian had produced a total of about 5,000 vehicles since starting production last fall, the company said, including R1T pickups, R1S SUVs and an electric delivery van for Amazon called the EDV 700. A second, smaller van for Amazon, called EDV 500, is currently in final testing, CEO RJ Scaringe said.

Rivian’s 2022 production goals reflect supply chain constraints and internal manufacturing issues. The 25,000 target is half the full-year number that Rivian laid out in its roadshow presentation to investors ahead of its IPO last November.

Rivian’s manufacturing efforts will soon get a new leader. Frank Klein, the current leader of auto supplier Magna International’s contract-manufacturing unit, will join the company as chief operating officer on June 1. Klein is expected to focus on resolving those supply chain issues and scaling up Rivian’s production.

The company had $17 billion in cash remaining as of March 31, according to its first-quarter release. It said that will be enough to cover its spending through the launch of its next model, a lower-cost vehicle called R2, at a planned new factory in Georgia in 2025.

Shares of the company rose roughly 3% in after hours trading Wednesday, after shedding nearly 10% during the regular trading session.

Through Wednesday’s close, Rivian’s shares had lost about 28% of their value since a post-IPO lockup period for insiders and early investors expired on Sunday. Ford Motor sold 8 million of its roughly 102 million Rivian shares on Monday at an average price of $26.80 per share. The stock debuted on the public markets at $106.75 per share six months ago.

This is breaking news. Please check back for updates.

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