Rivian (Nasdaq: RIVN) shares are flat despite the company's mixed earnings results but disappointing guidance for the full year. Overall, Rivian shares are down 63% YTD but are up nearly 90% from lows in May. Its bullish price action despite bad news is similar to what we are seeing in growth stocks and specifically, EV stocks. Bears point to it as a market that is out of whack, while bulls see it as an indication that the market has bottomed.
Rivian was one of the most anticipated and successful IPOs in 2021 due to a huge bull market in EV stocks and excitement about its product lineup. It also didn't hurt that the company's major investors included Amazon (Nasdaq: AMZN), Ford Motors (NYSE: F), and a who's who lineup of VC luminaries.
Many speculated that the company should already be considered the second-leading EV company in the US behind Tesla (Nasdaq: TSLA) as it was quite close to bringing its product to market. However, the stock and company have, not surprisingly, hit some stumbling blocks especially as the market environment took a sudden change in 2022 and the company's path to scaling production has been more challenging than expected.
Inside the Numbers
In Q2, Rivian reported an adjusted loss per share of $1.62 per share, while analysts were looking for a loss of $1.63 per share. Revenue beat expectations at $364 million vs analysts' expectations of $337.5 million.
The company gave some positive updates on its operations and financial position as it still has $15.5 billion in cash which it says is sufficient to fund operations until the launch of the R2 in 2025.
Currently, it has 98,000 preorders for its R1-truck and SUV. This year, it is expected to make 25,000 vehicles, but it does see a steeper loss of $5.4 billion vs its forecast of a $4.75 billion loss projection last quarter. It did make headway in reducing costs as it now sees $2 billion in capital expenditures in 2022 vs $2.6 billion last quarter. The major factor is delays in increasing production, higher costs, and lingering supply-chain issues.