Rivian sticks to annual production outlook despite missing targets

Rivian on Wednesday reaffirmed its yearly manufacturing forecast of 25,000 models, indicating ongoing offer chain disruptions and material fees prevented the electric powered vehicle maker from reaching its first target of 50,000 automobiles.

The Irvine, California-primarily based company’s shares rose 5% in extended buying and selling following closing the working day down 9.6%.

“We remain targeted on ramping creation all over 2022. We consider that the provide chain constraints will proceed to be the restricting issue of our creation,” Rivian explained in a letter to shareholders, introducing that it would be equipped to double its annual output absent provide constraints.

Rivian had halved its 2022 forecast in March as it struggled to protected the chips wanted to make its R1T pickup truck, R1S SUV and electric supply van for Amazon.com Inc (AMZN.O).

It delivered 1,227 cars in the to start with quarter, up from 909 units in the former quarter.

Rivian explained it has gained in excess of 90,000 pre-orders in the U.S. and Canada for its R1S SUV and R1T pickup truck as of May perhaps 9.

The company’s first-quarter revenue came in at $95 million, beneath analysts’ estimates of $130.5 million, according to Refinitiv facts.

It is really internet decline widened to $1.59 billion from $414 million a calendar year previously.

Wall Road buyers have been unhappy with the company’s progress and automobile order figures, and Rivian shares arrived less than growing strain this week as the firm’s submit-IPO lockup interval expired. Ford Motor Co (F.N) offloaded 8 million Rivian shares for $124 million, a Tuesday submitting showed.

At about $18.5 billion, Rivian’s sector valuation has plummeted due to the fact it went community in November. The firm is now valued around in line with the $17 billion it retains in hard cash and money equivalents.

Rivian, which at the moment operates a one plant in Illinois, is scheduling to devote $5 billion to build a new manufacturing plant in Georgia. A enterprise spokeswoman past 7 days said Rivian aimed to open up that plant in late 2024, but Rivian on Wednesday mentioned it specific a 2025 launch day.