Rivian Automotive Inc. reported a narrower-than-expected loss to start the year and reaffirmed its annual production plans as efforts to cut costs buoyed the electric-vehicle maker. Shares climbed as much as 7.1% in premarket trading on Wednesday.
The company lost $1.25 a share on an adjusted basis in the first quarter, according to a statement Tuesday. Analysts had expected a deficit of $1.56, based on the average of estimates compiled by Bloomberg. Revenue of $661 million was roughly in line with Wall Street’s projections.
The Irvine, California-based company has been seen as a leading contender to break out of a pack of EV startups that launched production in recent years, particularly after its blockbuster market debut in 2021. But Rivian has stumbled as a public company amid supply-chain snags and operational challenges while attempting to accelerate production.
Its shares rose 6.1% to $14.71 as of 4:56 a.m. in New York. The stock fell 25% this year through Tuesday’s close, after plunging 82% in 2022.
The manufacturer builds two battery-electric vehicles for consumers: the R1T pickup and the R1S sport utility vehicle. It also makes several variations of an electric last mile delivery van for Amazon.com Inc., one of its largest shareholders.
Rivian said that production of its consumer vehicles increased in the first quarter from the prior period. Overall output fell slightly, which Rivian has suggested is a result of parts changes and production planning for the vans.
Measures like reorganizing teams and simplifying its plans for future products helped reduce costs alongside the layoffs it has enacted over the past year, Rivian said.
The company reaffirmed plans to build 50,000 vehicles this year. It churned out just shy of its own target of 25,000 electric vehicles last year. Rivian also reiterated a previous forecast for a 2023 loss, excluding some items, of $4.3 billion. The company is targeting profitability in 2024.
Cash and equivalents stood at $11.2 billion at the end of the first quarter, down from $11.6 billion three months prior.
Capital expenditures of $283 million in the quarter were a little more than half of what analysts expected. Capex for 2023 will total $2 billion, Rivian said.
(Updates to add premarket share move)