Rivian (RIVN) will be the next pure-play electric vehicle maker on the earnings docket when it reports Q1 financial results after the bell on Tuesday. With rivals Lucid and Fisker weighing on the sector today, investors will be hoping Rivian can deliver some good news for the cash-intensive, and struggling sector.
For the quarter, Rivian is expected to report top-line revenue of $657.7 million, slightly less than the $663 million reported in Q4, but over 6 times the $95 million reported in Q1 last year. In terms of profit, the company is expected to report an adjusted EPS loss of $1.64, with EBITDA coming in at a loss of $1.322 billion.
At the end of Q4, Rivian forecast that it would produce an adjusted EBITDA loss for the year of $4.3 billion, a narrowing of the $5.2 billion EBITDA loss it had in 2022. The company, at the end of Q4, reported it had around $12 billion in cash and cash equivalents to fund activities. But Rivian said it expected to achieve positive gross profit in 2024.
Investors and analysts will be looking for any update on these projections following Q1 results.
Meanwhile, Rivian disclosed it delivered 7,946 vehicles in Q1, topping street estimates of 7,752 according to Bloomberg. Rivian also produced 9,395 vehicles, beating estimates of 8,752 vehicles. The company also said it “believes it is on track to deliver on the 50,000 annual production guidance” it provided during its fourth quarter earnings report. Rivian produced slightly less than 25,000 vehicles in 2021, as it suffered from component shortages and production issues at its sole plant in Normal, Illinois.
Earlier in March following the issuing of its production guidance, a report suggested Rivian had told internally that it could make as many as 62,000 vehicles this year, though a Rivian spokesperson told Yahoo Finance that figure was “taken out of context” and 50,000 remained the official guidance.
Wall Street has been on edge ahead of Rivian’s earnings. Long time bull Alexander Potter of Piper Sandler, for instance, went bearish only a few weeks back in mid-April. Potter downgraded the stock to neutral and slashed his price target to $15 from $63, writing that there is concern over a cash crunch. Potter predicted the company will have to raise $4 billion in at some point, with investors having to foot the bill with new stock or debt issuance.
Potter still believes in Rivian’s long-term strategy of vertically integrated production, but he sees the benefits coming years from now. The question: can Rivian, and its investors wait that long?