Rivian's stock pulls back as company keeps yearly production target steady
By Emily Bary
Rivian is holding an investor day and showed off upbeat delivery numbers for the June quarter
Rivian Automotive Inc. kept its production outlook for the year intact, even as the company signaled upbeat delivery numbers for its ongoing quarter.
The electric-vehicle maker is holding an investor day Thursday, and its presentation shows that it expects production of 9,100 to 9,300 units in the second quarter, which is about to wrap up, along with 13,000 to 13,300 deliveries in the same period. The delivery numbers are above the roughly 12,000 consensus view tracked by FactSet.
Rivian (RIVN) also kept steady its production goal of 57,000 units for the full year, according to its slide presentation.
Shares of Rivian were down 7% in morning trading Thursday, after they staged their largest single-day percentage gain on record in Wednesday's session. That followed the announcement of a joint-venture agreement with Volkswagen AG (XE:VOW), as well as a $1 billion investment from the German carmaker.
See more: Rivian's stock surges on $1 billion Volkswagen investment and joint-venture plan
Rivian also said in Thursday's presentation that it was maintaining its target for positive gross profit in the fourth quarter of this year. The company expects benefits from material costs and labor and overhead to help drive that flip toward profitability on the metric.
"We continue to scale while holding expenses flat," Rivian said in the materials. The company plans to cut $2.5 billion of capital expenditures from 2023 to 2025.
Don't miss: Rivian's VW partnership seen as 'game changer' for EV maker's prospects
Rivian sees a pathway to positive adjusted earnings before interest, taxes, depreciation and amortization in 2027, helped by factors such as its cost-optimization emphasis and a projected pullback in research and development expenses.
-Emily Bary
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06-27-24 0952ET
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