A Rivian electric van delivers packages for Amazon Prime Aug. 4 in Thornton, Colo. (David Zalubowski/Associated Press)
Rivian Automotive Inc. expects heavy losses to continue as it boosts production plans for the year and works to reestablish itself as a rising player in the increasingly crowded EV market.
The company will build about 52,000 vehicles in 2023, according to a statement Aug. 8, up from a prior goal of 50,000. Rivian also reported second-quarter earnings that beat Wall Street’s estimates.
The improved outlook shows how Rivian is putting recent supply chain problems behind it. The Irvine, Calif.-based company cited “progress we have seen to date on our production lines, the ramp-up of our in-house motor line and the supply chain outlook” for its revised expectations.
Reliable production growth is critical for Rivian to regain the momentum that propelled it to a blockbuster market debut in 2021, when it was considered a leading contender among a pack of EV startups vying to become the next Tesla Inc. Rivian has stumbled more recently while grappling with supply constraints, rising competition and cost concerns that led to job cuts.
Rivian said last month that it produced 13,992 vehicles — more than analysts had predicted — and delivered 12,640 to customers in the three months ended June 30. The company makes a pair of consumer vehicles and a battery-electric delivery van for Amazon.com Inc., its biggest shareholder.
The boosted full-year target comes after Rivian narrowly missed its goal of building 25,000 vehicles last year. Executives in March told employees internally that output of 62,000 this year was possible, Bloomberg has reported.
Still, the shares fell in postmarket trading after Rivian predicted an adjusted loss of $4.2 billion this year before interest, taxes, depreciation and amortization. While that’s a $100 million improvement from prior guidance, it’s narrowly short of the $4.18 billion loss projected by analysts.
The company lost $1.08 a share on an adjusted basis in the second quarter, better than the average $1.37 deficit expected by analysts in estimates compiled by Bloomberg. Revenue rose to $1.1 billion.
Its shares slipped 2.6% as of 5:11 p.m. ET in postmarket trading in New York, reversing an earlier gain. The stock jumped 35% this year through the Aug. 8 close following a recent rally that has put pressure on short sellers.
