Rivian Automotive Inc., a manufacturer of electric vehicles, beat quarterly revenue projections on Thursday by delivering more SUVs and pickup trucks.
The company has recently made progress in resolving supply chain issues. Also it is working to fix lack of semiconductors that have limited its ability to meet the soaring demand.
Rivian reaffirmed its 25,000 unit annual production forecast and stated that it anticipates bringing on a second shift for vehicle assembly at its Normal, Illinois plant by the end of the third quarter.
Rivian Automotive Inc (RIVN.O), a manufacturer of electric vehicles, forecasted a wider operating loss for the year on Thursday and revealed that many of its current models would not be eligible for new federal tax incentives.
The young company noted that tax incentives in the new energy and climate bill passed by the U.S. Senate are unlikely to benefit its R1 series of high-end pickups and SUVs.
According to Rivian, there is a rising demand for electric SUVs and trucks. Also Rivian received 98,000 preorders till the end of June. The R1S SUV and R1T pickup truck have received about 98,000 pre-orders, according to the company. The net loss increased from $580 million to $1.71 billion from the previous year.
In order to fully meet the high demand for the products, the company is still committed to ramping up its 150,000 installed annual units of capacity in Normal, Illinois.
The upcoming release of the brand-new Lithium Iron Phosphate (“LFP”) battery, modernised electronics, and single motor drive unit, dubbed “Enduro,” play a significant role in improving affordability and fostering appealing long-term gross margins.
Production is still being constrained by the supply chain. But the company is making progress thanks to a close working relationship with its suppliers.
By end of the 3rd quarter, the company hopes to be able to add a second shift for vehicle assembly.
RIVN missed analysts’ estimates for adjusted earnings per share of $1.63 in the second quarter of FY 22. It also reported adjusted earnings per share of $1.62. In the second quarter of FY 22, the company reported adjusted revenue of $364 million. It exceeded analysts’ predictions of $337.5 million.
The company now expects an EBITDA loss of US$5.4 billion for the entire year. It is higher than the US$4.75 billion loss. It had previously guided to, and US$2 billion in capital expenditures, down from its US$2.6 billion previous guidance.
In addition, Amazon announced in July 2022 that it would be bringing its personalised EDVs to cities across the nation, including Baltimore, Chicago, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle, and St. Louis.