Rivian announces its results on Wednesday. Production is key in a difficult EV sector.
After much bad news about the production of electric vehicle start-ups, market watchers are turning the 2023 production outlook
in focus when the company Update Investors Wednesday.
The electric truck manufacturer will announce the figures for the fourth quarter after the close of trading. Wall Street expects a loss of $2 a share on sales of nearly $800 million.
Sales and earnings are not that important yet. Rivian (Ticker: RIVN) is still ramping up production, and 2022 was its first year of significant sales. The view becomes more important.
Wall Street expects sales and production of around 60,000 to 65,000 vehicles this year. The company manufactured 24,337 vehicles in 2022. That was very close to the 25,000 units that Rivian forecast when it issued its first 2022 outlook last March.
It was quite an achievement to meet the initial guidance. Other EV manufacturers have struggled to ramp up production.
(LCID), for example, produced 7,180 vehicles in 2022. That’s about half of what was expected in early 2022. Additionally, Lucid said last Wednesday that it expects to build about 12,000 vehicles in 2023. Wall Street had expected closer to 20,000 units.
Lucid’s shares fell after its update. storage
(RIDE) also fell about 18% last week after the company halted production and recalled the small number of vehicles it had built to address quality issues.
Building electric vehicles is difficult. Investors are hoping Rivian will do better than some of its startup counterparts.
In addition to production, profitability and cash will be other watch items. “Rivian’s path to profitability remains a major concern for investors,” said Ben Rose, an analyst at Battle Road Research Barrons. “Any update on this will be crucial.” Rose has a hold rating on the stock.
Wall Street doesn’t expect profits until late in the decade. Analysts expect about $4.2 billion in cash to be used in 2023. Rivian ended the third quarter with approximately $14 billion on the books.
Options markets are suggesting that Rivian stock will move about 10% up or down after earnings were reported. The stock rose 17% after the company released third-quarter earnings in November.
Management hosts a telephone conference at 5 p.m. Eastern to discuss the results.
Rivian was up 3.2% on Tuesday at $19.03. The
was off by 0.1%. The
At the start of trading Tuesday, Rivian shares were flat for the year and are down about 73% over the past 12 months.
Write to Al Root at email@example.com
https://www.barrons.com/articles/rivian-earnings-stock-price-3a503ce0?siteid=yhoof2&yptr=yahoo Rivian announces its results on Wednesday. Production is key in a difficult EV sector.