Rivian Earnings Due With EV Startup's Production Outlook Key


ADELIA CELLINI LINECKER
 08/10/2022

Rivian (RIVN) reports second-quarter earnings on Thursday after the market close, amid layoffs and supply-chain issues. RIVN stock rose on Wednesday.

Rivian has begun its restructuring plan that includes laying off about 6% of its workforce, or about 900 people, according to an Aug. 1 TechCrunch report, citing an internal email.

The layoffs are affecting every department, except manufacturing operations at its Normal, Ill., factory.

Meanwhile, Rivian is also having difficulty delivering vehicles to customers on time. Rivian Forums reported on June 11 that some Rivian SUV reservation holders had received an email indicating delayed deliveries. Some who had an April-May delivery date were told they'd have to wait until the August-September time-frame; others until October-December.

The company reportedly gave two reasons: supply-chain issues and service-infrastructure availability.

"As we've continued to navigate a tight supply chain, we've had to reduce complexity wherever possible, including prioritizing certain build combinations over others," an email provided to Rivian Forums stated. "We continue to prioritize deliveries in locations where service infrastructure is in place so that we can provide the full ownership experience to Rivian owners from day one."

Rivian's R1T all-electric pickup truck was the first of its kind to hit the market in July 2021, beating out the Tesla (TSLA) Cybertruck, which has yet to enter production, and the Ford (F) F-150 Lightning.

Rivian Earnings

Estimate: FactSet analysts expect the company to post a loss of $1.63 a share vs. a 66-cent loss in the year-ago quarter. Sales are seen coming in at $335.4 million. There is no year-ago revenue figure.

Results: Check back Thursday.

Rivian has already said it produced 4,401 EVs in Q2, for a first-half total of 6,954.

Investors will want to know if Rivian still expects to produce 25,000 vehicles in 2022, which would require a continued ramp up.
Rivian Stock

Shares rose 1.9% to 37.40 on the stock market today. RIVN stock is well off its all-time high of 179.47, according to MarketSmith. But it's nearly doubled from its record low of 19.25 on May 11.

Rivian stock has an RS Rating of 41 out of a best-possible 99. Its Accumulation/Distribution Rating is B+, indicating a moderate amount of buying of its shares among institutional investors.

Tesla stock rose 3.9% on Wednesday. CEO Elon Musk sold $6.9 billion worth of TSLA stock in recent days in preparation to pay for the Twitter deal he is currently fighting in court.

EV startup Lucid[ticker symb=LCID rose 4.35% on Wednesday, after sinking 6.7% the day before to a one-month low. LCID stock tumbled Aug. 4 after the luxury EV sedan maker halved 2022 production targets, its latest output cut.

Ford, which raised the price of the F-150 Lightning by $6,000-$8,500 on Tuesday, retreated 3.7% Tuesday but rebounded to gain 3.1% on Wednesday.
Tax Credits Coming, But Rivian Won't Benefit Much

Rivian is prioritizing production of electric vans for Amazon. On July 21, Amazon rolled out its first Rivian electric delivery vans.

The EV startup has more than 90,000 R1 EV preorders as of May 9, including more than 10,000 new orders since a March price increase.

Rivian hiked the price of its R1T electric pickup around 17% in March, which increased the base cost to about $78,975 from $67,500. The price of the R1S SUV jumped about 20%, bringing the new base price to about $84,000 from $70,000. All prices are before federal tax credits.

Congress is on the verge of approving new EV tax credits. But Rivian won't qualify for most of them.

The new $7,500 incentive includes new price limits. The price limits are $80,000 for zero-emission vans, SUVs, and trucks. Electric sedans up to $55,000 qualify.

Meanwhile, few electric vehicles will qualify for the new EV credits' requirements on local vehicle assembly and rules on sourcing for battery minerals and materials.