SoFi CEO enters prepaid forward contract on 1.5 million shares
Investing.com -- Shares of Rivian Automotive (NASDAQ:RIVN) fell more than 4% in premarket trading on Wednesday after the electric carmaker’s second-quarter loss was worse than expected amid trade-related supply chain disruptions.
Rivian posted an adjusted loss of 97 cents per share for the quarter, missing analysts’ expectations of loss of 66 cents.
Revenue came in at $1.3 billion, in line with consensus forecasts.
Vehicle production fell to 5,979 units, down from 13,980 in the previous quarter, as Rivian pointed to supply chain constraints tied to shifts in trade policy.
Meanwhile, a move by the Trump administration to scrap a rule penalizing companies for not meeting fuel economy standards has dented demand for regulatory credits, which Rivian and peer Lucid (NASDAQ:LCID) have been selling to traditional car manufacturers looking to evade emissions fines.
These credits -- now seen at about half of Rivian’s initial estimate of $300 million -- were cited as a key reason for the increased loss estimate. In the second half, no revenues from these credits are anticipated to flow in, Rivian warned.
The company reaffirmed its full-year delivery guidance of 40,000 to 46,000 vehicles, but raised its annual adjusted core loss projection to $2.0 billion to $2.25 billion.
Rivian said it will temporarily shut down its Illinois plant for about three weeks in September to expand production capacity to roughly 215,000 units annually, as it prepares for the expected roll-out of its more affordable R2 sport-utility vehicle next year.
"The future of Rivian hinges on R2 product success; it could be a company and industry game changer," strategists at Canaccord Genuity argued in a recent note.
(Pratyush Thakur contributed reporting.)