Rivian, an electric vehicle startup based in Irvine, California, has faced growing production pressure since launching one of the largest IPOs in US history late last year.
In March, the company adjusted its full-year forecast to 25,000 vehicles from its original forecast of 40,000 due to supply chain restrictions. Rivian shares on Monday fell over 17% following a report that Ford had sold 8 million shares of a new electric vehicle company.
Given the company’s steep decline in the public market since its debut, its upcoming earnings report will carry additional weight.
What are we looking at? When the automaker reports first-quarter financial results later on Wednesday, industry watchers will be particularly interested in the company’s production outlook and delivery issues, as well as its relationship with Ford and its progress at the Georgia plant, which is slated to reopen. 2024.
What analysts and TechCrunch will look for
Despite headwinds in the industry, analysts expect Rivian to cut its losses from the fourth quarter of 2021, when it first released financial results as a public company. According to from Yahoo FinanceAnalysts expect Rivian to report a loss of $1.44 per share. (corrected) on revenue of $130.5 million in the first quarter of 2022. This compares to a loss of $2.43 per share on revenue of $54 million that Rivian reported for fourth quarter 2021.
Production bottlenecks and supply chain constraints
Rivian is facing the same supply shortfalls and production bottlenecks that the rest of the auto industry is facing this year. The global supply chain crisis forced the company to cut its full-year production forecast by nearly 38% in March, so we’ll be keeping an eye on any updates to Rivian’s forecasts.
The electric car maker built 2,553 vehicles and delivered 1,227 vehicles in the first quarter, meaning it must increase production tenfold before the end of the year to meet its forecast. (EV companies tend to report production and shipments ahead of official earnings reports.)
The company, which began deliveries of its first two models — the Rivian R1T electric pickup truck and R1S SUV — in the fourth quarter of last year, is now facing intensifying competition from legacy automakers, including the Ford Lightning F-150 and General Motors’ upcoming Silverado battery. – electric pickups.
Relationship with Ford
Ford held a 12% stake, or about 102 million shares, in the company until it sold 8 million shares after an insider share lock expired on Sunday. The move sent the startup’s stock plummeting. It’s worth noting that Ford retains a substantial stake in Rivian.
Rivian’s starting stock price of $106.75 placed it in a market capitalization higher than that of Ford and GM. Since its debut in November 2021, its share price has fallen by more than 75%. Ford posted a $3.1 billion loss in the first quarter, largely due to write-downs of the value of its investments.
We will be following updates on his relationship with Ford, as well as Amazon, another major shareholder that recently announced $7.6 billion loss for his stake in Rivian.
Finally, we’ll be keeping an eye out for news about Rivian’s $5 billion electric vehicle plant in Georgia, which the company is expected to begin construction this summer. The former startup received a state largest $1.5 billion bounty package in history build a plant on a 2,000-acre site east of Atlanta.
In turn, Rivian promised to hire 7,500 workers by the end of 2028, with an average annual salary of $56,000. However, the project has generated controversy at the local level on a number of fronts.
Rivian said the facility is targeting an annual production capacity of 400,000 vehicles, double that of its Normal, Illinois plant.
This is what we think about as we prepare for the report. More when we have numbers.
Credit: techcrunch.com /