Rivian (RIVN) has announced an upward revision to its electric vehicle (EV) production forecast for the full year, following a substantial third-quarter revenue increase that exceeded expectations. As a result, Rivian’s stock saw gains in extended trading.
Conversely, Lucid (LCID) has recently reduced its production outlook for 2023, attributing this decision to a considerably worse-than-anticipated decline in third-quarter revenue. Consequently, Lucid’s stock witnessed a decline during late trading.
Rivian has additionally announced its intention to expand its customer base for commercial electric vans, extending beyond its significant customer, Amazon (AMZN).
Both Rivian and Lucid specialize in producing high-end electric vehicles, but they have been utilizing significant amounts of cash. Concerns regarding a potential global slowdown in the electric vehicle industry heightened in October, with several major automakers, including Tesla (TSLA), issuing warnings about slowing demand. its electric vehicle
Regarding Rivian’s earnings, analysts had, on average, expected the manufacturer of premium electric vehicles to narrow its net loss to $1.34 per share from the $1.57 per share reported a year ago, as per FactSet data. Revenue was projected to surge by 146% year-over-year, reaching $1.321 billion.
During the latest financial report, Rivian’s performance demonstrated a positive trend, marking the fifth consecutive quarter with reduced year-over-year losses, as reported by FactSet. This report also marked the second consecutive quarter with over a billion dollars in revenue for the electric vehicle startup.
In a late Tuesday update, Rivian raised its 2023 production projection to 54,000 electric vehicles, an increase from the previous estimate of 52,000 made in August. The company attributed this adjustment to the progress made on their production lines, the successful ramp-up of their in-house motor production, and an improved supply chain outlook.
Rivian has also revised its 2023 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) guidance to a negative $4 billion, citing ongoing cost reduction efforts. Furthermore, the company has lowered its capital expenditure (capex) spending projection for the entire year to $1.1 billion.
In the third quarter, Rivian reported the production of 16,304 electric vehicles and delivered 15,564. Their product lineup includes the R1S SUV, R1T truck, and a commercial delivery van primarily serving Amazon. The average selling price of their vehicles is $85,000.