Rivian stands by production outlook amid EV start-up jitters

Shares of Rivian jumped after the US electrical automobile maker caught to manufacturing and monetary targets for the yr, in distinction with gloomier forecasts from rival start-ups.

The California-based firm on Tuesday reaffirmed plans to make 50,000 of its battery-powered vehicles, SUVs and supply vans this yr and expectations of an adjusted loss earlier than curiosity, taxes, depreciation and amortisation of $4.3bn. The inventory rose 5 per cent in after-hours buying and selling.

Rivian’s steerage got here after a number of different EV start-ups have reduce their manufacturing forecasts or warned about money burn and the potential for chapter.

Fisker on Tuesday reduce its automobile manufacturing forecast for the yr from 42,000 automobiles to a spread of 32,000 to 36,000. EV producer Nikola mentioned its money burn — $240mn within the first quarter — was “not sustainable”.

Lucid, which makes luxurious electrical vehicles, on Monday lowered manufacturing steerage from 14,000 to 10,000 automobiles, saying worries concerning the wider economic system coupled with larger rates of interest have been forcing the corporate to chop manufacturing to match deliveries. Final week Lordstown Motors warned that it might go bankrupt and cease manufacturing its flagship pick-up truck, the Endurance.

All the start-ups have struggled as provide chain issues delayed manufacturing, rates of interest have risen and conventional carmakers have begun to supply extra electrical fashions.

Rivian has not been spared, saying it expects the availability chain issues which have dogged the auto business for the final two years and hampered manufacturing at its manufacturing unit in Regular, Illinois to “proceed to be the principle limiting issue” for the plant’s output. “New engineering design modifications and key applied sciences” have been aimed toward mitigating provide chain constraints within the second half of 2023, Rivian mentioned.

Nonetheless, the corporate reported a smaller loss within the first quarter than buyers anticipated, posting a gross lack of $535mn for the primary three months of the yr, in comparison with an anticipated gross lack of $752mn. The corporate reported a gross lack of $502mn for a similar interval a yr in the past.

Rivian took in $661mn in first-quarter income — beating estimates of $652mn — because it delivered 7,946 automobiles.

Rivian additionally shored up its steadiness sheet in March by issuing convertible bonds price $1.5bn. It ended the quarter with $11.2bn in money and money equivalents on its steadiness sheet, down from $11.6bn in December.

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