-Rivian Automotive on Tuesday raised its full-year production forecast after it beat second-quarter revenue expectations on higher deliveries.
The company also posted a narrower quarterly loss, and said its expects a smaller operating loss in 2023, driving shares up 2.4% in trading after the bell.
Rivian now expects to make 52,000 vehicles in the year, up from its prior forecast of 50,000 units.
This comes after the electric vehicle maker delivered 12,640 vehicles in the April-June period, beating analysts’ estimates of 11,000, a positive sign for the company that had struggled to ramp up production due to supply chain issues fueled by the pandemic and Russia’s invasion of Ukraine among others.
It also saw a major improvement in its gross margins, which stood at negative 37% in the quarter, compared with negative 81% in the first quarter and now expects a $100 million improvement to its operating loss in the year at $4.2 billion.
The Amazon.com-backed company expects demand for its pickup trucks and sport-utility vehicles to remain stable even in the face of high borrowing costs.
Analysts believe that its efforts to build its own drive unit, which comprises motors and electronic components, with the aim of lowering dependence on suppliers, will help the company stand out among smaller EV startups.
Rivian’s revenue for the April-June period stood at $1.12 billion, compared with Wall Street estimates of $1 billion, according to Refinitiv data.
But as the company grew deliveries and built efficiencies in the June-quarter, it posted an adjusted loss of $31,595 per vehicle sold, compared with a loss of $67,329 in the previous three months.
It reported a net loss of $1.2 billion, compared with a loss of $1.71 billion a year earlier.
Cash and cash equivalents at the end of the quarter were $9.26 billion, compared with $11.57 billion, as of December 2022.
(Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Shinjini Ganguli)
