EV manufacturer, Rivian reported its third-quarter results beat Wall Street expectations and offered an improved outlook, which includes an increase in its annual production target by 2,000 vehicles to 54,000 units.
Rivian’s optimistic projection is a minor win for an industry hurting from the double whammy of high inflation- which has dampened customer appetite- and competition for demand- caused by consumer-friendly price cuts at market leader Tesla.
The company’s third-quarter net loss of $1.37 billion marked a 20% drop from the $1.72 billion in losses recorded during the same period last year. Additionally, Rivian declared a $942 million net loss, or $1.19 earnings per share, on an adjusted basis. Along with reducing its 2023 capital expenditure projection to $1.1 billion, Rivian also disclosed that its full-year adjusted EBITDA loss had fallen to $4.0 billion from $4.2 billion.
The EV maker reported $1.34 billion in revenue for the quarter, compared to a projected $1.31 billion and an adjusted earnings per share loss of $1.19, as opposed to an expected $1.32. This revenue amount marks a 150% increase over the $536 million recorded a year ago and a 19.6% increase over Q2’s $1.12 billion.
During a conference call, CEO RJ Scaringe remarked, “We’re going to focus on driving up production volume and achieving better-fixed cost leverage, achieving meaningful reductions in our material costs from a bill of materials point of view, working on building out our commercial and go-to-market operations to allow us to not only continue driving demand but to continue driving up our average selling price.”