Rivian’s Q1 revenue was lower than expected, but it maintained its full-year production target, which rose more than 12% after the market

Source: Zhitong Finance

$Rivian Automotive (RIVN.US)$ reported first-quarter 2022 results after the U.S. stock market closed on Wednesday. Among them, Rivian said the company accelerated production and sales in the first quarter, putting it on track to complete its production target of 25,000 electric vehicles this year, although current supply chain issues have hampered production growth.

After the financial report was announced, Rivian’s stock price rose by more than 12% after the market, and then fell back. As of press time, the stock rose by more than 6% after the market.

The company has produced about 5,000 vehicles since the start of production in September last year, despite supply chain challenges, and delivered 1,227 vehicles to customers in the quarter. In addition to consumer models, Rivian has also received orders for 100,000 electric delivery vans from its second-largest shareholder, Amazon. The first 10,000 units will be delivered by the end of this year and have been included in its full-year guidance.

Q1 revenue was $95 million, lower than the consensus estimate of $131.2 million; net loss was $1.593 billion, compared with $414 million in the same period last year; adjusted loss per share was $1.43, slightly better than the market expectation of $1.45 .

“The supply chain remains a bottleneck to our production, and we have been forced to suspend production for longer than expected,” Rivian said in a letter to shareholders. “We lost about a quarter of our planned production time due to supplier constraints.”

However, the company’s chief executive RJ Scaringe said on the conference call that while chip shortages remain an issue, the worst of the shortage is over. Scaringe said Rivian does not expect any problems with battery supply for the next five years. But as global EV production and competition grow, companies are trying to strike a long-term deal on battery metal supplies.

Separately, Rivian said the company’s cash and cash equivalents, excluding additional credit lines, were $17.4 billion in the first quarter, down from $18.4 billion at the end of 2021. The company said the funds will be enough to start production of the next-generation mid-priced vehicle, which will be assembled at a new plant built in Georgia.

While output is limited at Rivian’s only operating plant in Norman, Illinois, the company is already working to expand its production to increase capacity. Earlier this month, the company won $1.5 billion in state and local government awards to build a second $5 billion factory in Georgia, which it hopes will open in 2024.

Looking ahead, the company reiterated its 2022 production guidance of 25,000 vehicles and expects an adjusted EBITDA loss of $4.75 billion and capital expenditures of $2.6 billion.

In terms of stock price, due to the expiration of the lock-up period, Ford Motor sold 8 million Rivian shares at a price of $26.8 per share on May 9, with a total transaction value of $214 million, which made Rivian’s stock price volatile this week, closing on Wednesday. It fell 9.6% to $20.60 and is down about 80% this year.

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