Rivian Automotive posted better-than-expected results in the third quarter, with an adjusted per-share loss of $1.19 from sales of $1.3 billion, as compared to Wall Street’s expectation of a loss of $1.31 per share. Despite this loss, the company reported an increase in production of 16,304 units, up from 13,992 in the second quarter. This is a promising upward trend, leading the company to raise its production guidance to 54,000 vehicles for 2023. Given these results, shares were up 0.3% in after-hours trading, signaling investor optimism regarding the company’s projections.
Despite initial fears around a slowdown in EV demand, Rivian’s third-quarter results provided a glimmer of hope for stakeholders. The company is working on reducing costs and achieving some benefit of scale, which can be seen in its decreased cash use of $1.1 billion in the quarter, down from $1.6 billion in the previous quarter. The company now has about $12 billion in cash and investments on hand, ending the third quarter in a strong financial position. This bodes well for future operations and expansion. Furthermore, the increase in production to 16,304 units in the third quarter provides a positive outlook for the company’s future performance and solidifies their position in the competitive EV market.
Looking ahead, investors are eager to hear what Rivian management has to say about the recent developments in the EV industry. With rivals like Tesla, Ford, and General Motors facing challenges, Rivian’s ability to maintain steady growth and capture market share will be an important indicator of its long-term potential. Management’s conference call at 5 p.m. Eastern time will provide further insights into the company’s outlook and strategy for navigating the evolving landscape of electric vehicles. Given their current and projected financial position, Rivian is poised to solidify its position as a key player in the growing electric vehicle market.
