© Reuters. FILE PHOTO: A Rivian R1T electric truck is seen outside the Munro & Associates headquarters in Auburn Hills, Michigan, US, June 3, 2022. REUTERS/Rebecca Cook/File Photo
by Akash Sriram
(Reuters) – Rivian Automotive Inc on Tuesday beat Wall Street estimates for quarterly revenue as it sold more expensive electric vehicles and stuck to its annual production forecast of 50,000 vehicles.
Shares in Rivian, which also slashed costs during the January-March period, rose about 6% in extended trading as investors cheered its results that followed Lucid Group Inc and Fisker Inc slashing their productivity targets.
Tesla (NASDAQ:) has cut prices globally this year as part of the recession’s playbook to boost sales volume, squeezing smaller electric vehicle operators who began deliveries about a year ago.
Rivian expects to increase production on its in-house Enduro powertrains to help offset parts supply issues in the second half of the year, enabling it to meet its annual production target.
The company did not provide details of its pre-orders at the end of the quarter amid demand concerns exacerbated by rising borrowing costs and deep price cuts from industry leader Tesla.
Rivian’s R1T trucks start at $73,000, while the R1S SUV is priced at $78,000.
Amazon-backed Rivian said in March that it would sell $1.3 billion in green convertible notes due in 2029 to shore up its cash balance. Analysts see it as a temporary solution.
According to Refinitiv data, revenue for the quarter ended March 31 was $661 million, compared to Wall Street estimates of $652.1 million.
Cash and cash equivalents at the end of the first quarter amounted to $11.24 billion, compared to $11.57 billion in the previous three-month period.
Rivian’s quarterly net loss narrowed to $1.35 billion from $1.59 billion a year earlier.
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