Key Takeaways
Rivian reported a smaller-than-expected Q1 loss and boosted production plans for its new Georgia facility, signaling confidence in its electric vehicle ramp-up even as competitors slow EV investments.
"The smaller loss and better gross profit show solid cost control," said Al Root, a reporter at Barron's.
The EV maker posted a Q1 adjusted operating loss of $621 million on $1.4 billion in sales, beating consensus estimates for a $819 million loss. Gross profit of $119 million was more than double the $56 million analysts projected.
Shares rose about 0.7% in after-hours trading. The results provide a sharp contrast to Ford and General Motors, which have recently written off billions in EV investments due to flagging demand.
Rivian delivered 10,365 vehicles in the first quarter, up from 8,640 in the same period a year ago, and reaffirmed its full-year production guidance of 62,000 to 67,000 vehicles. The company is also increasing the planned annual production capacity of its new Georgia plant to 300,000 vehicles from 200,000. The plant is slated to begin production in 2028 and will be supported by a $4.5 billion Department of Energy loan.
The company's growth plans are also getting a boost from a partnership with Uber, which plans to invest up to $1.25 billion in Rivian to deploy 10,000 of its fully autonomous R2 robotaxis, starting in San Francisco and Miami in 2028.
Despite the positive results, Rivian's stock is down about 19% year-to-date, and 90% from its all-time high in November 2021. The company ended the quarter with $5.4 billion in cash and liquidity, with a projected cash use of $3.8 billion in 2026.
The better-than-expected results and capacity expansion suggest Rivian is navigating the EV market's challenges better than some legacy automakers. Investors will be watching for the start of external deliveries of new, lower-priced models in the coming weeks to gauge demand.
This article is for informational purposes only and does not constitute investment advice.
