Rivian AutomotiveRIVNShares rose in premarket trading Wednesday after the electric truck maker defied industry concerns about a pullback in demand with improvements in production rates and a better earnings forecast.
Amazon-backed AMZN Rivian, which makes electrified pickup trucks and SUVs, said it would increase 2023 production by 2,000 units to 54,000 units, even as it scaled back its capital spending plans following a strong third-quarter earnings report that included revenue overall of $1.34 billion and a smaller loss than expected.
Last month, Rivian said it delivered 15,564 units during the three months ending in September, a 23% increase from the previous period, and said it was on track to produce about 52,000 vehicles this year.
Rivian added late Tuesday that its 2023 capital spending will total around $1.1 billion, while guiding investors to negative adjusted earnings in the region of $4 billion.
“There has been a lot of noise and a lot of dialogue recently around the adoption of electric vehicles, and I want to state emphatically how deeply convinced we are that the entire automotive industry will transition to electric in the next decade or two,” said the director executive. RJ Scaringe told investors on a conference call Tuesday night.
“In the short term, I want to acknowledge the macroeconomic and geopolitical pressures affecting consumers and businesses, particularly rising interest rates,” he added. “In this context, we remain focused on the factors that are under our control, driving greater cost efficiency (and) continuing to increase production.”
Rivian shares rose 7.3% in premarket trading to indicate an opening price of $18.69 each, a move that would extend the stock’s six-month gain to about 35%.
Scaringe’s comments about high interest rates and broader macroeconomic concerns echo those of Tesla CEO Elon Musk, who struck a bearish tone following the automaker’s disappointing third-quarter earnings last month.
Musk said “stormy” economic conditions, rising interest rates and uncertain demand have clouded the group’s near-term outlook, as it appeared to move away from the company’s stated goal of increasing overall deliveries by 50%. every year.
Tesla’s key supply chain partner, Panasonic Holdings, warned in late October that its battery production facilities are running well below capacity amid a global supply glut and falling demand.
Panasonic Holdings posted a third-quarter loss and cut its full-year profit outlook, citing weak sales of Tesla’s high-end Model S and Model to stimulate demand and maintain the market. share.
American electric vehicles rival FordFand general enginesG.M.Meanwhile, fresh from agreeing to new labor contracts with the United Auto Workers Union that ended nearly 45 days of strikes at production and assembly sites across the country, they withdrew their full-year profit forecasts and cut earnings. sales prospects for electrified cars as the industry continues. face declining interest from customers.
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