Rivian is under pressure to increase production and maintain demand

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The average estimate from 16 analysts based on Refinitiv data is a loss of $1.82 per share, despite revenue rising from just $1 million in the same period a year ago, Reuters said. Rivian launched the R1T electric pickup in the fourth quarter of 2021 to great applause.

CEO RJ Scaringe, who has been under pressure to ramp up production of Rivian’s consumer vehicles and electric vans, is likely to face earnings call questions over demand as interest rates rise and the economy cools.

The automaker said in early October that it produced 7,363 vehicles at its Illinois plant and shipped 6,584 vehicles in the third quarter. Rivian said it expects to meet its full-year production target of 25,000 units for the three vehicles sold. The company does not break down production by model.

Rivian is struggling to meet demand amid supply chain challenges. The company’s most recent public statement on its backlog put pre-orders for the R1T and R1S at 98,000 as of June 30th. Irrespective of this, Amazon has an initial order for 100,000 EDP vehicles.

Scaringe could also face questions about plans to build a second plant in Georgia for the company’s smaller R2 platform, which is being developed for more mainstream vehicles. Rivian has said it has enough money to build the factory and produce the new models.

Bloomberg said on Tuesday that the EV maker has lost nearly $125 billion in market value since its IPO last year. Rivian Shares was trading at about $32 late Tuesday, down about 60 percent from its asking price of $78 on November 9, 2021.

“The market is transitioning from a market that was dependent on both fiscal and monetary stimulus to a fundamentals phase,” Wiley Angell, chief market strategist at Ziegler Capital Management, told Bloomberg. “The Federal Reserve is making some very dramatic moves and we are still at a stage where I would prefer stable companies with less risk and that does not speak for a company like Rivian.”

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