Rivian Rips on Production Beat
Better-than-expected results help break the negative sentiment clouding the EV space
BREAKING NEWS
Rivian surged this morning after managing to raise their expectations for production and crushing their losses. Turns out there's still plenty of EV demand in this market.
WHAT HAPPENED
In a moment where Tesla and Ford helped sour the market on EVs, Rivian reported they crushed their loss down to $1.19 per share. That's much better than the market anticipated, especially since Rivian nailed their revenue target of $1.3 billion. After a year of consistently raising their production targets as their plants continue to ramp up faster than expected, with Rivian raising their production expectations slightly to 53,000 for the year.
MORE EFFICIENT
Rivian is raising those production expectations despite a small shutdown at their assembly line this quarter, showing that the company is getting faster while making the same kind of factory improvements that Tesla has. More importantly, management calmed investors by discussing how they will trim capital expenses this year. That news comes after Rivian really spooked investors with a bond issuance a few weeks back which suggested the company was in trouble. Instead, Rivian is locking in costs and gearing up for a bigger factory shutdown next year that will help them produce vehicles even faster.
WHY IT MATTERS
Rivian basically just made themselves the standout in the EV industry. With Tesla struggling under the weight of their monumental software project, Rivian is reminding the market of how EVs can be an efficiency play. Rivian ramping production is also a stark contrast to Lucid, which lowered production guidance for their vehicles amid mounting losses. Rivian stock rose over 5% in early trading while Lucid fell 3%.