Electric-vehicle startup Rivian reported better-than-feared third-quarter results late Wednesday, with output ramping up. The company stuck to its 2022 production target. Rivian stock surged early Thursday, after plunging during Wednesday's regular session.
Rivian Earnings
Estimates: FactSet analysts expected Rivian to cut losses vs. a year ago by 77% to $1.79. Sales were seen hitting $550.3 million vs. $364 million last quarter.
Results: Rivian lost $1.57 a share excluding various items, a big decline vs. a year earlier and smaller than Q2's $1.62 a share. But revenue came in at $536 million.
Rivian stuck by its 2022 EV production target of 25,000 vehicles. That initial target was 50,000, but halved earlier this year.
In October, Rivian announced it produced 7,363 electric vehicles at its Normal, Ill., plant and delivered 6,584 EVs during the third quarter. The EV startup made 4,401 vehicles in Q2 and delivered 4,467.
In the Q3 earnings release, Rivian said net preorders for the R1T and R1S are at 114,000 in North America as of Nov. 7.
Rivian Stock
Shares popped nearly 8% in premarket action on the stock market today. Rivian stock plunged nearly 12% to 28.07 on Wednesday, undercutting the low of a bottoming base. RIVN stock has a 40.96 buy point, according to MarketSmith.
The stock is way off its all-time high near 180 in November 2021. Rivian stock has weak fundamentals, with an RS Rating of just 27 out of a best-possible 99.
Shares closed far below their slumping 50-day line.
Rival EV startup Lucid crashed 17% to the lowest since January 2021. Lucid reported better-than-expected loss and revenue, but Lucid Air reservations are falling. EV leader Tesla sold off 7.2% to a two-year low.
Key Alliances
Key client and investor Amazon is rolling out more than 1,000 Rivian electric vans just in time for holiday deliveries. That follows a launch in July in which hundreds of EDVs were deployed in select cities. Amazon has ordered 100,000 electric delivery vans in total, which it expects to have in hand by 2030, the company said in a recent statement.
Rivian was the first company to launch an electric pickup truck with its R1T model in September 2021. Later that year, it unveiled its R1S sport utility vehicle.
The production ramp-up has been difficult, however. Supply-chain woes and inflation have jacked up the price of parts and labor. As a result, Rivian increased the prices of its vehicles in March 2022, which caused some buyers to cancel orders.
While output has picked up, there have been growing pains. Rivian stock plunged in October when the carmaker announced a recall of nearly all of its vehicles to fix a steering defect.
The company forges ahead with new partnerships, however. In September, Rivian and German automaker Mercedes-Benz signed a memorandum of understanding to make large electric vans for each of its brands.
"With production expected to meet 25,000 for the year, a key Mercedes partnership and Amazon a key partner, we believe Rivian has the potential to become one of the main leaders in the electric-vehicle industry over the next decade," Wedbush analyst Dan Ives told IBD. "However, given macroeconomic challenges, chip shortages and production skepticism, the Street has raised a few key questions looking into the company's future."
Ives is nevertheless optimistic that Rivian can continue to ramp up production amid still-strong demand.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
