Rivian raises production guidance: Greene still says it could 'run into a wall'

Rivian Automotive Inc (NASDAQ: RIVN) lost more-than-expected on a per-share basis in its fiscal second quarter. Shares are trading slightly down in extended hours.

Notable figures in Rivian’s Q2 earnings report

• Lost $1.2 billion versus the year-ago $1.7 billion
• Per-share loss also inched up from $1.88 to $1.89
• Adjusted loss printed at $1.62 a share as per the press release
• Revenue soared from $95 million to $1.12 billion
• Consensus was $1.43 a share loss on $1.02 billion revenue
• Cash on hand declined sequentially to $10.2 billion
• Capex also went down from $359 million to $255 million

Rivian Automotive Inc is committed to turning green in terms of gross profit in 2024. Its CEO RJ Scaringe told CNBC today:

Our Q2 results reflect continued focus on cost efficiency as we accelerate towards profitability. We have achieved meaningful reductions in both R1 and EDV vehicle unit cost.

Rivian raises its full-year production guidance

On the plus side, Rivian raised its production outlook for the full year on Tuesday. It now expects to produce 52,000 vehicles this year versus 50,000 it had guided for earlier. Still, Victoria Greene of G Squared Private Wealth cautioned on CNBC’s “Closing Bell: Overtime”:

They still have a lot of headwinds, especially if EV market softens. Still hemorrhaging. If we have any macro headwinds, Rivian will run into a wall because they’re not as well capitalised as a GM or a Ford.

So far, though, she agreed that Rivian’s performance looks good.

Last month, the EV company said its deliveries nearly tripled and production more than tripled in the second quarter on a year-over-year basis (find out more). It now expects capital expenditure to be capped at about $1.7 billion – roughly $300 million less than its previous guidance.