Rivian Shares Jump 2.2% on Higher Revenue, 2023 Production Outlook – InvestorPlace

wp header logo 2400

Wall Street Legends Launch A.I. Predictive System on Jan. 9
A new A.I. breakthrough could hand you 30X BIGGER gains than usual by accurately forecasting earnings BEFORE they’re public.
Rivian is one of the few EV startups to raise its annual production forecast this year
Advertisement
Source: Tada Images / Shutterstock.com
Rivian (NASDAQ:RIVN), the Irvine-based electric vehicle producer, reported better-than-predicted revenues on Tuesday, Nov. 7. RIVN stock climbed 2% following the release of its Q3 earnings report.
The company posted revenues of $1.33 billion, surpassing the predicted $1.32 billion. Management also raised their 2023 production prediction to 54,000 vehicles from roughly 52,000.
This comes as good news to the electric truck maker. Rivian’s performance in 2023 has been somewhat rocky. The stock previously fell 23% in October after Rivian announced it would issue $1.5 billion of convertible notes, a move Wedbush analyst Dan Ives criticized as “another gut punch to investors.” A loss per share of $1.44 was 8 cents worse than expected.
Challenges also remain. Eddie Pan, a writer at InvestorPlace, warns of the upcoming debut of the Tesla Cybertruck starting Nov. 30, terming it direct competition for Rivian’s R1T and R1S pickup models. Cost control also remains an issue. Management now seeks to reduce capital expenditures to $1.1 billion to help tide the shortfall. Unsold inventories also increased from $1.3 billion to $2.5 billion, even after a $292 million writedown.
Nevertheless, Rivian remains one of the few electric vehicle startups that has raised its production outlook. With its year-to-date return performing below the S&P 500’s 15.3% at -2.3%, it will be intriguing to observe how Rivian trudges on its path to profitability.
Thomas Yeung produced this article using data from Thomson Reuters and unique generative AI prompts. These prompts help distill real-time quarterly earnings data and combine it with InvestorPlace.com’s best-in-class analysis. Our readers get a deep dive into financial results at lightning speed. These articles have been reviewed by a human editor prior to publication. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.
Tom Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.
InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.

Article printed from InvestorPlace Media, https://investorplace.com/2023/11/rivian-shares-jump-2-2-on-higher-revenue-2023-production-outlook/.
©2024 InvestorPlace Media, LLC
Market Analysis
Stocks to Buy
Today's Market
Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes. Copyright © 2024 InvestorPlace Media, LLC. All rights reserved. 1125 N. Charles St, Baltimore, MD 21201.
Not Yet a Premium Subscriber?

Your Email

source