Rivian Automotive (RIVN) shares edged higher after the upstart electric truckmaker forecast a wider-than-expected 2022 loss but stuck to its forecast of producing 25,000 vehicles by the end of the year.
The stock also found support from a number of analysts upgrades, with price target boosts from RBC, D.A. Davidson and Wells Fargo, as investors look through near-term supply chain disruptions and focus on the group’s improving pre-order backlog.
Rivian, which is hoping to ramp-up production in the coming years to challenge established rivals such as Tesla (TSLA) in the global EV market, said its first-half production tally came in just under 7,000 after delivering 4,467 over the three months ending in June. The Amazon AMZN-backed group generated revenues of $364 million and a second quarter loss of $1.71 billion.
That figure will widen to $5.45 billion by the end of the year, Rivian said, wider than its prior projection of $4.75 billion, even with 98,000 unfilled pre-orders for its pickup trucks and unsold inventory of around $655 million.
Scroll to Continue
“The supply chain continues to be the limiting factor in our production rates but we remain confident in our ability to achieve our target,” CFO Claire McDonough told investors on a conference call late Thursday. “On the delivery side, in July, we started a larger effort to move from truck to rail for our outbound freight, which should provide additional cost savings as we scale our operations.”
Rivian shares were marked 0.23% higher in pre-market trading to indicate a Thursday opening bell price of $39.04 each, a move that would still leave the stock nursing a six-month decline of around 37.7%.