By Senad Karaahmetovic
Shares of Rivian (NASDAQ:RIVN) are trading almost 7% higher in pre-open Thursday after the electric vehicle (EV) maker reported better-than-feared results and reaffirmed its full-year guidance.
Rivian reported a loss per share of $1.57 on revenue of $536 million, which compares to the average analyst estimate that called for a loss per share of $1.81 on revenue of $568.5M. Overall, the adjusted EBITDA loss was $1.31 billion as Rivian managed to cut costs.
Rivian said it built 7,363 EVs in Q3 and it continues to experience strong demand. The EV maker reaffirmed its full-year EBITDA and production forecast.
“The demonstrated production rates within our Normal factory continue to give us confidence in our systems, equipment and team members’ ability to ramp our production lines,” the California-based company said in the statement.
“However, we believe that supply-chain constraints will continue to be the limiting factor of our production.”
Mizuho analysts cut the price target to $58 per share from $65 on the Buy-rated Rivian shares.
“We believe key highlights include: 1) RIVN reaffirmed its C22E 25k production target and stated supply chain improving, 2) second shift now ramping which should be a further production tailwind, 3) stronger net preorders now at ~114k, up 16% q/q, and 4) ~$13B cash on hand should continue to fund operations through 2025E,” they said in a client note.
Truist analysts expected a positive reaction in Rivian shares after “strong” Q3 results.
“We'd caution investors not to weigh the R2 commentary too heavily as the company had already signaled a late 2025 launch. We view 3Q results as positive for RIVN given the company's notable progress on cost management & operational efficiencies, and would expect shares to outperform tomorrow,” they wrote.