Though EV maker Rivian (RIVN) maintained its production forecast for the year, shares wavered in extended trading as the company sees a wider loss for the year.
For the second quarter, Rivian reported:
Revenue of $364 million vs $335.7 million estimated
Adjusted EPS loss of ($1.62) vs. ($1.61) estimated
Rivian also posted an automotive business loss for the quarter of $1.7 billion.
The metric that has investors most concerned is that Rivian now sees its adjusted EBITDA loss for the year widening to $5.45 billion for the year, from $4.75 billion it had predicted earlier.
Now it's not all bad news for Rivian as the company is maintaining its 2022 production forecast of 25,000 vehicles for the year. Given what the company has produced thus far, Rivian will need to make around 19,000 trucks in the second half of the year to meet its 2022 forecast, which could be a stretch for a company still trying to ramp up its production capabilities.
Rivian also says its preorder backlog, as of June 30, 2022, was approximately 98,000; it had previously reported 90,000 preorders a quarter ago.
"Supply chain continues to be the limiting factor of our production; however, through close partnership with our suppliers we are making progress," the company said in a statement. "We expect to be able to add a second shift for vehicle assembly towards the end of the third quarter."
Yahoo Finance has also confirmed Rivian is now offering reservation holders the ability to sign binding purchase agreements in order to preserve the current $7,500 federal tax credit for purchasing an EV. Under the current wording of the Inflation Reduction Act, which may get a House vote later this week, many Rivian orders would be disqualified due to MSRPs above $80,000, or potential buyers being disqualified if their adjusted gross income tops a certain threshold. Rivian’s management team will likely be asked about this new order process on the call.
Editor's note: This story is breaking and will be updated.