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Rivian (RIVN) Incurs Wider-Than-Expected Q2 Loss, Sales Beat

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Rivian Automotive (RIVN - Free Report)  incurred a net adjusted loss of $1.89 a share in the second quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $1.67. The bottom line, however, improved from the year-ago loss per share of $5.74. Total revenues came in at $364 million, surpassing the consensus mark of $338 million. In the year-ago quarter, the electric vehicle (EV) maker didn’t generate any revenues. Second-quarter 2022 revenues improved significantly from $95 million generated in the first quarter of 2022.

Rivian Automotive, Inc. Price, Consensus and EPS Surprise

Rivian Automotive, Inc. Price, Consensus and EPS Surprise

Rivian Automotive, Inc. price-consensus-eps-surprise-chart | Rivian Automotive, Inc. Quote

Key Tidbits

The company produced 4,401 vehicles during the quarter under review, up from 2,553 in the first quarter of 2022. Deliveries jumped 264% sequentially to 4,467 units. The company’s net R1 preorder backlog in the United States and Canada was around 98,000 units as of Jun 30.

RIVN generated a negative gross profit of $704 million during the quarter under review, deteriorating from $502 million in the January-March 2022 period. Operating expenses totaled $1,004 million, up from $580 million in the comparable year-ago period. The increase in expenses stemmed from efforts associated with the firm’s R1 and RCV programs. Additionally, other advanced product development activities, including the development of its R2 platform, future propulsion platforms, and vehicle network architecture, escalated the R&D costs.

Rivian ended the quarter with $14.9 billion in cash and cash equivalents. Long-term debt totaled $1.22 billion as of Jun 30.  Capex for the second quarter totaled $359 million. Given the higher year-over-year net cash used in operating activities and massive capital spending, Rivian witnessed a negative free cash flow of $1,563 million in the second quarter of 2022, which deteriorated from a negative $920 million during the corresponding period of 2021.

RIVN reaffirms its target to produce 25,000 vehicles this year. In the light of the current supply chain environment and commodity cost inflation, Rivian has downwardly revised its EBITDA guidance. It now forecasts a negative adjusted EBITDA of $5,450 million for 2022, deteriorating from the previous forecast of $4,750 million. Meanwhile, capex is now envisioned at $2,000 million compared with the prior projection of $2,600 million.

Peer Releases

Lucid Group (LCID - Free Report) incurred second-quarter 2022 adjusted loss of 33 cents a share, narrower than the Zacks Consensus Estimate of a loss of 44 cents. For second-quarter 2022, the company registered revenues of around $97 million. Total costs and expenses totaled $656.5 million, up from 249 million in the year-ago quarter. LCID incurred $309.8 million in capital expenditure.

Lucid exited the quarter with cash and cash equivalents of $3.1 billion. The company delivered 679 Lucid Air cars in the first quarter. As of Aug 3, it had taken over 37,000 customer reservations, reflecting potential sales of more than $3.5 billion. LCID envisions 2022 production of Lucid Air in the band of 6,000-7,000 units.

Nikola Corp (NKLA - Free Report) incurred second-quarter 2022 adjusted loss of 25 cents a share, narrower than the Zacks Consensus Estimate of a loss of 27 cents. NKLA generated $18 million in revenues in the quarter under review, ahead of the consensus mark of $17 million. In second-quarter 2022, the company spent a total of $172.2 million on R&D and SG&A activities.

NKLA had cash and cash equivalents of $441.7 million as of Jun 30, 2022. Nikola targets to deliver 300-500 production Tre BEV Trucks this year. It also intends to start the construction of its first hydrogen production hub in Arizona.


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