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Rivian Stock Jumps Nearly 6% After EV Maker Narrows Quarterly Losses

May 10, 2023
minute read

On Tuesday, Rivian Automotive Inc. reported a narrower loss for the first quarter, leading to a nearly 6% rise in its shares in the aftermarket. 

Despite the loss of $1.35 billion, or $1.45 a share, compared to a loss of $1.6 billion, or $1.77 a share, in the same period last year, Rivian managed to keep its guidance for the year intact. 

The company's revenue jumped to $661 million from $95 million a year ago, and its rising production enabled it to spread out fixed costs, according to CEO RJ Scaringe. 

The company reaffirmed its production outlook of 50,000 vehicles for the year, and executives said they believed the supply chain would continue to limit facility output. 

CFO Claire McDonough confirmed that the company had enough cash to fund operations through 2025, adding that the balance sheet had been strengthened ahead of the launch of the R2, a cheaper, new-generation EV platform in 2026. 

Despite the positive quarterly report, analysts warn that there is still much work to be done to ramp up production and narrow losses. 

While Rivian's guidance remained intact, Fisker Inc. and Lucid Group Inc. both cut their outlook for the year. 

Rivian's shares have lost 40% over the past 12 months, in contrast to gains of about 3.3% for the S&P 500 index, and are down 16% so far this year.

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