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Earnings Results: Rivian loses nearly $2 billion in second quarter as expenses mount

Rivian Automotive Inc. late Thursday reported a narrower-than-expected quarterly loss, but a warning about supply-chain snags and rising expenses seemed to give investors pause and the stock moved erratically in the extended session.

The EV maker said it lost $1.7 billion, or $1.89 a share, in the second quarter, compared with a loss of $580 million, or $5.74 a share, in the year-ago period. Adjusted for one-time items, Rivian lost $1.62 a share in the quarter.

Revenue reached $364 million, from no revenues a year ago, mostly thanks to the deliveries of 4,467 electric vehicles in the quarter, the company said.

Rivian
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stock initially fell about 5% in extended trading after the results, but then rose about 1%. FactSet consensus called for an adjusted loss of $1.63 a share on sales of $335 million.

Operating expenses rose to $1 billion, as compared with $580 million in the second quarter of 2021.

The company reaffirmed its goal of making 25,000 EVs this year.

Demand for its electric trucks and SUVs remained “strong” and as of June 30 it had about 98,000 preorders on its books from customers in the U.S. and Canada, it said. Preorders accelerated in the second quarter from the first quarter, Rivian said.

“Our core focus remains on ramping production,” Rivian executives said in a letter to investors.

The company has “confidence” it can ramp production, but “we believe that supply-chain constraints will continue to be the limiting factor of our production.”

Rivian said it expects an 2022 adjusted EBITDA loss of $5.45 billion, from a previous estimate of a $4.75 billion loss, to reflect “the latest estimates of impacts” from the production ramp, raw-material inflation, higher expenses with expedited freight, and other “supply-chain challenges,” the company said.

Rivian also lowered its 2022 capital expenditures guidance to $2 billion, from a previous guidance of $2.6 billion.

Earlier Thursday, Chief Executive RJ Scaringe tweeted that a “last piece of structural steel” was set on Rivian’s factory in Normal, Ill., bringing the plant to more than 4 million square feet.

Rivian shares have lost 63% so far this year, compared with losses of around 11% for the S&P 500 index
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