Rivian shares decline in its first-quarter amid EV production ramp-up
- ByStartupStory | May 12, 2022
Rivian’s first-quarter losses nearly quadrupled as the electric vehicle manufacturer burned through cash fighting supply chain limitations and production difficulties to get its vehicles to market.
Rivian recorded a cash outflow of $1.59 billion in its first quarter, compared to $414 million in the same term last year. Rivian is currently shipping its R1T truck and R1S SUV to consumers, as well as its EDV commercial electric van to Amazon. The firm also suffered a decline of $1.77 per share on earnings of $95 million in the first quarter.
Rivian recorded a loss of $1.43 per share on an annualized basis in the first quarter. Analyst expectations were not met, notably in terms of revenue.
Analyst expectations were not met, notably in terms of revenue. Rivian is predicted to report a decline of $1.44 per share on earnings of $130.5 m in the first quarter of 2022, according to Yahoo Finance data.
Despite the dismal results, Rivian shares rose more than 7% in after-market trade, possibly as investors clung to some of the better news from the Q1 reports.
Rivian confirmed its ambition of producing 25,000 vehicles by 2022, to eventually control the goal of eventually controlling over 10% of the worldwide market.
In a letter to shareholders, the carmaker expressed caution about how dazzling its future will be, warning that supply chain limits on electronics and other components constitute a substantial bottleneck.
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