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At end of difficult day for EV stocks, Rivian offers both positive and negative news

At end of difficult day for EV stocks, Rivian offers both positive and negative news


After a disastrous day for its shares and those of other manufacturers of electric vehicles, electric truck manufacturer Rivian provided investors with a mixed bag in its third quarter earnings release.

Although increasing 47% from the second quarter, its revenue of $536 million fell short of analysts’ expectations of $552 million.

On the one hand, Rivian reported an adjusted loss of $1.4 billion, which was less than the $1.7 billion loss estimate made by Refinitiv’s analysts poll. Additionally, it said that net reservations rose from 98,000 to 114,000 during the second quarter.

The increase in bookings was interesting because late Tuesday, electric vehicle manufacturer Lucid stated that 37,000 reservations for their EVs had dropped to 34,000.

Shares of market leader Tesla (TSLA) fell 7% as well, though this decline may have been more affected by reports that CEO Elon Musk had sold roughly $4 billion worth of Tesla (TSLA) stock since he finalised the acquisition of Twitter two weeks ago.

This revelation caused shares of Lucid (LCDX) to drop 17% for the day and contributed to declines of 12% each in Rivian and Chinese EV manufacturer Nio (NIO) shares during regular US trading hours.

Rivian also reiterated its intention to increase production to produce 25,000 vehicles this year. This is a bold objective considering that other manufacturers, like Tesla, have had to lower their sales projections for the year as a result of supply chain concerns.

When compared to the roughly 14,000 vehicles Rivian has produced in the first three quarters of this year, reaching the 25,000 production goal would need a 45% increase in output over the 7,400 vehicles it produced in the most recent quarter.

However, it pushed back its target date for the release of its smaller R2 model to 2026, even though it claims to still be on track to reach that 25,000 objective for 2022. It had earlier predicted that model’s release in 2025. In after-hours trading, shares of Rivian fluctuated drastically in response to the story, first climbing 3%, then dropping to trade slightly lower, then soaring 5%.

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  • At end of difficult day for EV stocks, Rivian offers both positive and negative news
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