Rivian Automotive increased its full-year production forecast, and the company's CEO claimed that as long as expenditures are kept in check, the electric vehicle manufacturer will have enough cash to endure until 2025.
After the data were released, Rivian's stock initially increased by almost 3%. In choppy extended trading, it increased by 1%. In the last three months, the stock has increased by almost 80%.
The Amazon-backed startup has been spending money like crazy to increase production and compete with Tesla, the market leader, which has lowered pricing.
Despite the fact that its pickup trucks and sport-utility vehicles have higher demand than smaller companies, Rivian has performed better than these companies.
Two EV companies, Lordstown Motors and Proterra, filed for bankruptcy in June and this week, respectively, due to competition and a lack of finance.
Rivian CEO RJ Scaringe stated that his company was in a far better financial condition in an interview with Reuters.
"The cash balance that we have today takes us through 2025," Scaringe said. "We will be very thoughtful and intentional on how we secure additional capital to support the growth of the R2 program," he added, referring to the company's upcoming lineup of smaller, cheaper cars.
In the second quarter, Rivian's cash balance decreased by almost $2 billion, falling to $9.26 billion.
After having trouble ramping up production due to a lack of components like power semiconductors, Rivian has switched to constructing Enduro powertrains internally to decrease costs and lessen reliance on vendors.
Scaringe, however, asserted that despite increased supply chain visibility, the situation had not yet returned to pre-pandemic levels.
"There's always going to be risk associated with supply chain," he said. "That contemplation of that risk is what's informed the guidance that we provided."
The business increased its prior prediction of 50,000 units to 52,000 automobiles in its announcement on Tuesday.
According to Refinitiv statistics, it reported second-quarter revenue of $1.12 billion, exceeding Wall Street projections of $1 billion, and a reduced quarterly loss. In the period between April and June, 12,640 automobiles were delivered, exceeding the 11,000 predictions of analysts.
The gross margin for the second quarter decreased from the first quarter's negative 81% to a negative 37%. Compared to a loss of $67,329 in the previous three months, it reported an adjusted loss of $31,595 per vehicle sold.
On the other hand, Proterra, a supplier of parts for electric vehicles, filed for Chapter 11 bankruptcy protection on Monday, becoming the newest business to fail in a sector struggling with funding shortages, sluggish demand, and supply chain problems.
After failing to resolve a dispute over a promised investment from Foxconn, Lordstown Motors filed for bankruptcy protection and listed itself for sale a few weeks prior to this action.
Proterra described its assets and liabilities as being between $500 million and $1 billion, however the value of its shares dropped by almost half after the bell. As of the most recent closing, the company's market value was $362 million.
In a merger agreement with a business that wrote blank checks in January 2021, Proterra was valued at $1.6 billion, including debt.
"We have faced various market and macroeconomic headwinds that have impacted our ability to efficiently scale," CEO Gareth Joyce said in a statement.
Proterra, a manufacturer of battery packs and electric buses, stated that it plans to carry on with business as usual. It intends to submit the normal motions to the bankruptcy court in order to operate on current funds.
In an effort to reduce costs, the firm earlier this year revealed plans for additional job losses and claimed it would consolidate the production of electric buses and batteries in South Carolina.
(Source:www.newswav.com)
After the data were released, Rivian's stock initially increased by almost 3%. In choppy extended trading, it increased by 1%. In the last three months, the stock has increased by almost 80%.
The Amazon-backed startup has been spending money like crazy to increase production and compete with Tesla, the market leader, which has lowered pricing.
Despite the fact that its pickup trucks and sport-utility vehicles have higher demand than smaller companies, Rivian has performed better than these companies.
Two EV companies, Lordstown Motors and Proterra, filed for bankruptcy in June and this week, respectively, due to competition and a lack of finance.
Rivian CEO RJ Scaringe stated that his company was in a far better financial condition in an interview with Reuters.
"The cash balance that we have today takes us through 2025," Scaringe said. "We will be very thoughtful and intentional on how we secure additional capital to support the growth of the R2 program," he added, referring to the company's upcoming lineup of smaller, cheaper cars.
In the second quarter, Rivian's cash balance decreased by almost $2 billion, falling to $9.26 billion.
After having trouble ramping up production due to a lack of components like power semiconductors, Rivian has switched to constructing Enduro powertrains internally to decrease costs and lessen reliance on vendors.
Scaringe, however, asserted that despite increased supply chain visibility, the situation had not yet returned to pre-pandemic levels.
"There's always going to be risk associated with supply chain," he said. "That contemplation of that risk is what's informed the guidance that we provided."
The business increased its prior prediction of 50,000 units to 52,000 automobiles in its announcement on Tuesday.
According to Refinitiv statistics, it reported second-quarter revenue of $1.12 billion, exceeding Wall Street projections of $1 billion, and a reduced quarterly loss. In the period between April and June, 12,640 automobiles were delivered, exceeding the 11,000 predictions of analysts.
The gross margin for the second quarter decreased from the first quarter's negative 81% to a negative 37%. Compared to a loss of $67,329 in the previous three months, it reported an adjusted loss of $31,595 per vehicle sold.
On the other hand, Proterra, a supplier of parts for electric vehicles, filed for Chapter 11 bankruptcy protection on Monday, becoming the newest business to fail in a sector struggling with funding shortages, sluggish demand, and supply chain problems.
After failing to resolve a dispute over a promised investment from Foxconn, Lordstown Motors filed for bankruptcy protection and listed itself for sale a few weeks prior to this action.
Proterra described its assets and liabilities as being between $500 million and $1 billion, however the value of its shares dropped by almost half after the bell. As of the most recent closing, the company's market value was $362 million.
In a merger agreement with a business that wrote blank checks in January 2021, Proterra was valued at $1.6 billion, including debt.
"We have faced various market and macroeconomic headwinds that have impacted our ability to efficiently scale," CEO Gareth Joyce said in a statement.
Proterra, a manufacturer of battery packs and electric buses, stated that it plans to carry on with business as usual. It intends to submit the normal motions to the bankruptcy court in order to operate on current funds.
In an effort to reduce costs, the firm earlier this year revealed plans for additional job losses and claimed it would consolidate the production of electric buses and batteries in South Carolina.
(Source:www.newswav.com)
