Rivian (RIVN) stock price is bouncing back from the all-time lows hit earlier this week as new data indicates the EV maker delivered more vehicles in Q1 than expected.
Rivian stock bounces on Q1 delivery data
After a challenging year in 2022, as Rivian’s CEO RJ Scaringe described it, the beginning of this year hasn’t been much easier for the young EV maker.
Rivian produced 24,337 vehicles last year, slightly missing its goal of 25,000 while delivering 20,332 units in 2022. The company posted a net loss of $1.7 billion, roughly the same as the previous quarter, with a negative gross profit of $1 billion in the fourth quarter.
The EV maker laid off about 6% of its workforce in an effort to reduce costs and improve efficiency in February. Then the following month, Rivian was hit with a recall of over 12,700 of its vehicles.
Despite Rivian claiming to be funded through 2025, an SEC filing earlier this month revealed the EV maker was looking to raise $1.3 billion in cash via green convertible notes, sending Rivian stock into freefall.
However, it was Rivian’s guidance in February that initiated the fallout. Wall Street was expecting the company’s delivery and production guidance to be between 60,000 to 65,000, though Rivian stuck with a modest 50,000 EV production goal.
According to new data from state registrations gathered by Cox Automotive, Rivian had 8,145 registrations in the first quarter.
The total easily beats the Wall Street estimate of 7,167 reported by Benzinga, which also noted used vehicle data indicated fewer Rivian vehicles were on sale compared to peers like Ford, with the Lightning EV pickup, and Lucid, another EV startup that Rivan often gets compared to.
Rivian has implemented a number of cost-cutting measures to improve capital efficiency and boost production, including potentially moving engineers closer to its Normal, Illinois, factory or its headquarters in Irvine, California.
Rivian stock ended the trading day nearly 10% higher, a shift that could be related to the new information.
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March 30, 2023 at 03:09AM
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Rivian (RIVN) stock bounces after Q1 delivery data indicates strong results - Electrek
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