Rivian and its rise in EV: Q2 results and alliance with Tesla

Rivian EV


  • Amazon-backed Rivian expects to report losses of 1.41 per share and revenue of 978.88 million in the second quarter.
  • Since going public in 2021, Rivian has beaten revenue expectations in three quarters and underperformed in four.
  • The alliance with Tesla Inc. marks a milestone for Rivian, adopting the North American Charging Standard (NACS) with projections for 2024.

Rivian Automotive Inc., the renowned manufacturer of electric vehicles, is set to release its financial results for the second quarter. A look back gives us an idea of ​​what the market could expect from this EV giant at the end of the day.

According to projections by Benzinga Pro, Rivian is estimated to report losses of 1.41 per share and income of 978.88 million during the second quarter.

With financial backing from Amazon.com, Inc., Rivian has managed to surprise the market by beating earnings expectations five times in a row. However, since its public debut at the end of 2021, the company’s revenue has been up and down: beating estimates in three quarters and falling short in four others.

In the previous quarter, Rivian’s results stood out by exceeding market expectations. They reported income of 661 million, exceeding forecasts of 642.22 million. Also, a loss of 1.25 per share turned out to be more favorable compared to projections, which anticipated a loss of 1.58 per share.

Rivian has reiterated its commitment and vision for the future: to produce 50,000 vehicles during 2023. In a letter sent to its shareholders, the automotive firm said that they expect to double their production capacity in 2023, which will translate into a significant reduction in costs. fixed per vehicle. They were also optimistic about an increase in production volume by 2024.

Although production and delivery figures for the second quarter are already known (with 13,992 vehicles produced and 12,640 delivered), investors’ eyes will be on possible updates for the third quarter and forecasts for the second half of the year.

Alliance with Tesla Inc.

In technological innovations, Rivian announced its alliance with Tesla Inc., adopting the North American Charging Standard (NACS). The company projects that the NACS charging adapters will be available to the public in the spring of 2024, and investors will be watching for any progress on this.

Jordan Levy, an analyst at Truist Securities, signaled his confidence in Rivian by maintaining a Buy rating and raising his price target on its shares from 28 to 30. Levy emphasized Rivian’s positive stock performance, buoyed by the announcement of the cargo deal with Tesla and preliminary production and delivery figures.

The future looks bright for Rivian, and Levy has high expectations: He anticipates positive gross margin progress by 2024 and is watching for more details on the R2 model and the expansion of its EV platform, especially in relation to Amazon.

Following the release of the results, Rivian’s management team is scheduled to hold a conference call at 5 pm ET to discuss these figures in detail.

We conclude by noting that, according to Benzinga Pro, Rivian’s shares have experienced an increase of 0.81%, trading at 24:30 on Tuesday morning, prior to the announcement of its quarterly results.