Rivian (RIVN) has announced it sees a bigger loss for the year than predicted, causing shares to waver in extended trading.
Rivian reported that in the second quarter, revenue was $364 million, above its $335.7 million estimate. Adjusted earnings per share loss came in at $1.62, compared to the $1.61 estimate. It posted a business loss of $1.7 billion.
Most troubling, Rivian reported that it see its adjusted EBITDA loss for the year swelling to $5.45 billion for the year, compared to its earlier estimate of $4.75 billion.
The company continues to predict a 2022 production forecast of 25,000 vehicles for the year. That would mean that it will need to produce 19,000 vehicles in the second half to fulfill that forecast. Some analysts feel that is a bit of a stretch for the company.
Rivian also announced that as of June 30, 2022, it had about 98,000 preorders backlogged, up 8,000 from the 90,000 preorders it logged a quarter ago.
In a statement the company said, “Supply chain continues to be the limiting factor of our production; however, through close partnership with our suppliers we are making progress. We expect to be able to add a second shift for vehicle assembly towards the end of the third quarter.”
Rivian is now allowing reservation owners to sign binding purchase agreements, which will allow them to take the $7,500 federal tax credit for purchasing an EV. That is important because under the new Inflation Reduction Act, which the House will be voting on imminently, many Rivian orders will be disqualified due to having an MSRP over $80,000, as well as buyers seeing themselves disqualified over new income level limits.
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