Rivian Automotive (NASDAQ: RIVN) stock plummeted in pre-market trading Wednesday after the EV maker reported lower-than-expected Q1 earnings.
Rivian Automotive (RIVN) recently announced its first-quarter results, revealing a wider-than-expected loss as the company grappled with substantial per-vehicle losses despite a significant increase in revenue.
The electric vehicle (EV) startup announced a loss of $1.24 per share, down from a $1.25 loss in the same period last year, while revenue surged over 80% to $1.204 billion. Analysts had estimated a loss of $1.15 per share with sales totaling $1.17 billion.
Despite the revenue growth, Rivian faced challenges, with the company losing a staggering $38,784 per vehicle delivered in the first quarter. However, the company closed Q1 with $7.858 billion in cash, equivalents, and investments, showing strong financial health.
Rivian remains committed to achieving modest gross profit by the fourth quarter of this year, anticipating a significant improvement in its vehicle material and conversion costs.
CEO RJ Scaringe expressed optimism about the company’s performance, noting,
“First-quarter results exceeded our outlook and set a strong foundation for the remainder of the year as we focus on continued demand generation, delivering cost and plant efficiency improvements, advancing R2 development, and driving towards profitability.”
Rivian delivered 13,588 vehicles in Q1, slightly above analyst estimates, while producing 13,980 units. The company reaffirmed its previous guidance of producing 57,000 EVs in 2024.
Looking ahead, Rivian forecasts flat production in 2024 compared to 2023, with consumer and commercial vehicle deliveries expected to grow by low single digits.
Rivian Automotive (NASDAQ: RIVN) Stock Movement
As of 07:48 a.m. (Eastern Time) Wednesday, RIVN stock traded at $9.55, marking a 6.83% decrease compared to the previous trading session.
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