Rivian Automotive Inc. late Thursday reported a narrower-than-expected quarterly loss, but called for steeper losses for the year, warned about ongoing supply-chain snags, and saw rising expenses, sending the stock lower in the extended session.
The EV maker said it lost $1.7 billion, or $1.89 a share, in the second quarter, compared with a loss of $580 million, or $5.74 a share, in the year-ago period. Adjusted for one-time items, Rivian lost $1.62 a share in the quarter.
Revenue reached $364 million, from no revenues a year ago, mostly thanks to the deliveries of 4,467 electric vehicles in the quarter, the company said.
FactSet consensus called for an adjusted loss of $1.63 a share on sales of $335 million.
Rivian RIVN, +4.14% stock initially fell about 5% in extended trading after the results, then briefly reversed course into positive territory before settling 2.4% lower.
“Rivian’s team delivered strong second-quarter results despite the challenging supply-chain environment,” Chief Executive RJ Scaringe said in a call with investors after the results.
Rivian saw “a number of challenges” related to the supply-chain shortages in the quarter, including ongoing issues with chips.
The outlook for the second half of the year is improving, however, and Rivian is on track to add a second shift to its factory by the end of the current quarter, Scaringe said. Rivian also reaffirmed its goal of making 25,000 EVs this year.
Rivian’s EVs are generating buzz, the CEO said, and most customers appear to be opting for the vehicles’ more expensive trims.
Demand for its electric trucks and SUVs remained “strong,” and, as of June 30, Rivian had about 98,000 preorders on its books from customers in the U.S. and Canada, the company said in a letter to investors accompanying results.
Preorders accelerated in the second quarter from the first quarter, the company said.
“Our core focus remains on ramping production,” Rivian executives said in the letter.
The company has “confidence” it can ramp production, but “we believe that supply-chain constraints will continue to be the limiting factor of our production.”
Operating expenses rose to $1 billion, as compared with $580 million in the second quarter of 2021.
Rivian said it expects a 2022 adjusted EBITDA loss of $5.45 billion, from a previous estimate of a $4.75 billion loss, to reflect “the latest estimates of impacts” from the production ramp, raw-material inflation, higher expenses with expedited freight, and other “supply-chain challenges,” the company said.
Rivian also lowered its 2022 capital expenditures guidance to $2 billion, from a previous guidance of $2.6 billion.
Earlier Thursday, Scaringe tweeted that a “last piece of structural steel” was set on Rivian’s factory in Normal, Ill., bringing the plant to more than 4 million square feet.
Rivian shares have lost 63% so far this year, compared with declines of around 11% for the S&P 500 index SPX, -0.07%.