Electric-car maker Rivian reported first-quarter earnings that topped Wall Street analysts’ expectations on first-quarter revenue, driven by growth in sales of electric pickup trucks.
Rivian delivered 7,948 electric pickups this quarter, a 548% year-over-year increase, and maintained its production forecast for this year, which is to produce 50,000 electric vehicles in 2023.
Rivian also cut costs between January and March of this year. The company’s shares rose about 6% in after-hours trading after the earnings report, as investors cheered its results.
By contrast, Rivian’s rivals had disappointing first-quarter performances, with Lucid Group and Fisker both slashing their production targets.
After entering 2023, Tesla, the leader in the field of electric vehicles, has set off a wave of price cuts around the world to stimulate sales and cope with the expected upcoming economic recession. Tesla’s price cuts put pressure on smaller electric car makers that just started deliveries about a year ago.
Rivian expects ramped-up production of its in-house enduro powertrains to help offset parts supply issues in the second half of the year, allowing it to meet its annual production goals.
The company did not disclose details of its pre-orders as of the end of the first quarter, while rising borrowing costs and aggressive price cuts by industry leader Tesla have fueled demand concerns.
Rivian’s R1T pickup starts at $73,000, while the R1S SUV starts at $78,000.
Rivian, an Amazon backer, said in March it would sell $1.3 billion in convertible bonds due 2029 to shore up its cash balance. Analysts see this as a temporary solution.
In the first quarter of this year, which ended March 31, Rivian had revenue of $661 million, compared with Wall Street analysts’ expectations of $652.1 million, according to Refinitiv data.
The company ended the first quarter with $11.24 billion in cash and cash equivalents, compared to $11.57 billion in the previous quarter. Rivian’s quarterly net loss narrowed to $1.35 billion from $1.59 billion a year ago.