Last Update: May 10, 2023, 06:16 AM IST
Shares of Rivian, which also cut costs during the January-March period, rose nearly 6% in extended trading as investors appreciated its results. (Image: Rivian / Twitter)
Rivian expects improved production of its in-house enduro powertrains in the second half of the year to help address parts supply issues.
Rivian Automotive Inc beat Wall Street estimates for quarterly revenue on Tuesday as it sold higher-priced electric vehicles, and stood by an annual production forecast of 50,000 cars.
Shares in Rivian, which cut costs during the January-March period, rose nearly 6% in extended trading as investors appreciated its results after Lucid Group Inc and Fisker Inc cut their production targets. .
Tesla Inc has cut prices globally this year as part of its recessionary playbook to boost sales volumes, putting pressure on smaller EV players that started deliveries about a year ago.
Rivian expects production of its in-house enduro powertrain to ramp up in the second half of the year, helping it meet its annual production target.
The company did not provide details of its pre-orders at the end of the quarter, amid concerns of higher borrowing costs and increased demand from industry leader Tesla’s aggressive price cuts.
Rivian’s R1T pickup truck starts at $73,000, while the R1S SUV costs $78,000.
Amazon-backed Rivian said in March it would sell $1.3 billion in convertible green bonds due in 2029 to shore up its cash balance. Analysts are seeing this as a temporary improvement.
Revenue for the quarter ended March 31 was $661 million, compared with Wall Street estimates of $652.1 million, according to data from Refinitiv.
Cash and cash equivalents at the end of the first quarter were $11.24 billion compared to $11.57 billion in the prior three-month period.
Rivian’s quarterly net loss narrowed to $1.35 billion from $1.59 billion a year ago.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
