EV maker Rivian told investors its second quarter production numbers were on track and that it expects to meet its guidance of 50,000 vehicles produced this year.
The company produced 13,992 vehicles at its manufacturing facility in Normal, Illinois and delivered 12,640 vehicles during the same period. Potential rival Fisker Inc. reported its production numbers were lower than expected during the quarter.
The information was welcome news for the company’s investors, who pushed the stock to up to nearly $26 a share, a high-water mark for the calendar year, before closing at $24.70 for the day, up 14.3% tto the prior day’s close.
The electric pickup and SUV maker’s been on a run in recent days, nearly doubling in price since closing at $13.26 on June 26. Overall, the stock up about 40% since the start of the year. However, it late February, investors were less than happy.
After it recalled 12,700 vehicles and revealed it was cutting its 2023 production forecast from 60,000 to 50,000 units, the stock dropped 7%. The decline came despite a prediction by the company it would be in the black in 2024.
Problems and more problems
Rivian didn’t meet its announced goal of producing 25,000 vehicles last year, managing only 24,337 units, and delivering just 20,332 vehicles.
“Supply chain continues to be the main limiting factor of our production; during the quarter we encountered multiple days of lost production due to supplier shortages,” the company’s shareholder later stated. The company expects to have continue supplier shortages going forward, but anticipates they should be easing.
No doubt this is why its future production forecast isn’t as high as analysts expect.
And, to finish it the discouraging news, the company announced a recall to fix a sensor in the front passenger seatbelt. The recall is its third since going public in November. The company feels that fewer than 100 vehicles are affected, which should limit the cost of the recall.
Taking a hit
This led Rivian’s adjusted 2022 loss before income, taxes, depreciation and amortization to come in at nearly $5.2 billion, slightly less than its projected $5.4 billion loss.
Quarterly revenue was disappointing, totalling $663 million, not the expected $742.4 million The company reported a fourth quarter 2022 loss of $1.7 billion, down from the $2.5 billion reported a year earlier. That amounts to $1.87 per share, compared to $4.83 per share last year.
Rivian reported $11.6 billion in cash and cash equivalents, down from the $13.3 billion at the end of the third quarter.