Rivian stock soared in the post-market trading Tuesday following the release of better-than-expected revenue figures for the third quarter. The EV maker also raised its full-year production forecast by 2,000 vehicles, setting the new target at 54,000 units.
Rivian Automotive, Inc. (NASDAQ: RIVN) posted revenue of $1.34 billion for the third quarter, outperforming Wall Street’s estimated figure of $1.33 billion, according to data from the London Stock Exchange Group (LSEG). However, the company reported a net loss of $1.37 billion for the quarter, which marks an improvement compared to the loss of $1.72 billion from the same period a year ago.
As of the end of the September quarter, the company retained a healthy cash reserve of $7.94 billion, slightly down from the $9.26 billion held in the preceding three-month period.
Breaking another significant development, Rivian announced the termination of its exclusivity deal with its major shareholder, Amazon.com, Inc. (NASDAQ: AMZN), regarding its electric delivery van. This strategic move opens the door to a broader global customer base for the company.
The company has stated that it is currently in talks with potential customers interested in its Rivian Commercial Vehicle platform, which forms the foundation for its electric delivery vans. The electric vehicle maker reiterated its commitment to fulfilling an order of 100,000 delivery vans for Amazon by 2030.
Rivian had previously reported that sales of its higher-priced SUV have been outpacing the R1T model, and the company is beginning to reap the rewards of its price adjustments implemented in March of the previous year, leading to an improved average selling price for its vehicles.
Last month, Rivian beat market expectations with its third-quarter delivery figures. The company has chosen not to reduce prices and, instead, has opted to produce its Enduro powertrains in-house as a strategic effort to lessen its reliance on suppliers and reduce expenses. This decision has garnered widespread approval from both investors and analysts.
Rivian stock jumped 4.36% to trade at $18.18 in the after-hours trading on Wednesday.