Home ›› 11 Nov 2022 ›› Stock
Rivian Automotive Inc missed Wall Street estimates for third-quarter revenue, but shares rose after hours as the electric-vehicle maker reported a smaller-than-expected loss and a higher number of preorders, and reaffirmed its full-year production outlook.
The company, which went public a year ago, also said its smaller R2 vehicle family will begin production in 2026, a year later than previously announced, at Rivian’s planned $5 billion Georgia plant, reports Reuters.
The automaker ended the third quarter with $13.8 billion in cash, down from $14.9 billion at the end of the second quarter.
“We remain confident in our ability to fund operations with cash on hand through 2025,” Rivian said in an SEC filing late on Wednesday. Shares were volatile in after-market trading, rising as much as 7 per cent after falling nearly 12 per cent in the regular session.
In September, Rivian and Mercedes Benz said they are planning a joint venture to produce electric vans in a factory in Eastern Europe within the next few years. Rivian also has a contract to supply 100,000 electric delivery vans to its biggest investor, Amazon.com Inc.
The news has not been so good for Rivian’s rivals.
UK electric van startup Arrival warned investors on Tuesday that it did not have enough cash to assure its survival through 2023. EV maker Lucid on Tuesday reported a $670 million loss for the third quarter and said its order bank had dropped since the second quarter.
Shares of Tesla Inc, Rivian’s chief competitor, sank 7 per cent to their lowest point in two years after CEO Elon Musk sold nearly $4 billion worth of Tesla stock following his purchase of Twitter.
