The company said it had 7,000 new orders for its R1 electric pickup in the last two months, bringing total net orders up to 90,000 vehicles. And it said that despite supply chain problems that have cut its production by 25% since the end of March, it is still on track to build 25,000 vehicles by the end of this year.
And perhaps most assuring to investors, it said it has enough cash on hand – $ 17 billion – to be able to launch production of its next vehicle, the R2, at a second planned plant in Georgia in 2025 and operate through at least that year.
The company said it had a first quarter operating loss of $ 1.77 a share, worse than the $ 1.44 a share forecast by analysts surveyed by Refinitiv. Revenue for the startup company was only $ 95 million, far less than the $ 130 million forecast.
But the company’s outlook going forward was more important to investors than the quarterly results. Shares of Rivian gained as much as 10% in after-hours trading following the report.
“To say the Rivian story has been disappointing to us (and the Street) so far would be an understatement,” said Dan Ives, tech analyst at Wedbush Securities in a note to clients. “It does seem the corner has been slowly turned. However … they need to start delivering models to customers and stop the excuses.”
Ives kept his overperform, or buy, recommendation on the stock. But he cut its price target to $ 30 from $ 60 a share.
But its first two financial reports in December and March disappointed investors and the stock lost almost all of its early value. Shares Wednesday were down a total of 89% from that post-IPO high.
The drop in the stock’s value so far this quarter could mean each will report another hit to earnings in the second quarter, unless the after-hours rally in the shares continues.