Rivian beats quarterly revenue estimates on higher-priced EV sales
Reuters
Published May 09, 2023 04:16PM ET
Updated May 09, 2023 07:21PM ET
By Akash Sriram
(Reuters) -Rivian Automotive Inc on Tuesday beat Wall Street estimates for quarterly revenue as it sold more higher-priced electric vehicles, and stood by its annual production forecast of 50,000 cars.
Shares in Rivian, which also cut costs during the January-March period, rose about 6% in extended trading as investors cheered its results that followed Lucid Group Inc and Fisker Inc trimming their production targets.
Tesla (NASDAQ:TSLA) Inc has cut prices globally this year as part of its recession playbook to increase sales volumes, pressuring smaller EV players that started deliveries just about a year ago.
Rivian expects production ramp up of its in-house Enduro powertrains to help offset parts supply issues in the second half of the year, enabling it to meet its annual production target.
The company did not provide details of its pre-orders at the end of the quarter amid demand concerns aggravated by higher borrowing costs and industry leader Tesla's aggressive price cuts.
Rivian's R1T pickup trucks start at $73,000, while the R1S SUV is priced at $78,000.
Amazon-backed Rivian said in March it would sell $1.3 billion in convertible green bonds due in 2029 to shore up its cash balance. Analysts view it as a temporary fix.
Revenue for the quarter ended March 31 stood at $661 million, compared with Wall Street estimates of $652.1 million, according to Refinitiv data.
Cash and cash equivalents at the end of the first quarter were $11.24 billion, compared with $11.57 billion, in the preceding three-month period.
Rivian's quarterly net loss narrowed to $1.35 billion from $1.59 billion a year earlier.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.