|
The
company looked set to add nearly $800 million to its market
valuation, based on premarket stock prices, after it reiterated
its annual production forecast and beat quarterly revenue
estimates.
The results showed how Rivian's move to raise prices last year
has helped the EV maker stem cash burn at a time when peers
Lucid Group Inc and Nikola Corp are struggling with ballooning
losses.
"We do see the average selling price continuing to expand and
grow," CEO RJ Scaringe said, adding that Rivian's expanded
offerings including a larger battery called the "Max Pack" will
aid demand.
Still, some analysts were skeptical about the prospects of a
company that is caught in a price war started by market leader
Tesla Inc and faces increasing competition from well-heeled
legacy players such as Ford Motor Co.
"We continue to like the truck, but not necessarily the stock
and the headlines that may be ahead," said Michael Shlisky of
D.A. Davidson, who was among the 10 analysts that lowered their
price target on a stock that has declined 25% this year.
Shlisky said Rivian has seen some success in reducing costs by
switching to self-made Enduro motors and cheaper lithium iron
phosphate batteries, but its efforts to renegotiate with
suppliers for lower prices might not yield results as it lacks
production volume.
The Amazon-backed company made 9,395 vehicles between January
and March, which equates to about 2% of the 440,808 produced by
Tesla in the same period.
Nonetheless, the company is expected to benefit from a pullback
in commodity prices and easing supply chain issues.
"As sagging EV commodity prices, technology improvements, and
supply chain loosening positively impact operations, we see a
logical path to positive gross margins next year," Canaccord
Genuity analysts said.
(Reporting by Akash Sriram in Bengaluru; Editing by Saumyadeb
Chakrabarty)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
