Rivian Automotive’s share value increased 4.4% on Tuesday after the company released its third-quarter reports. The positive reaction of investors is attributable to a variety of factors. One of the major factors is the increase in the earnings of the electric vehicle maker and revenue in the third quarter.
As a result, the management of the company raised its production target and improved its annual adjusted EBITDA loss guidance. Furthermore, the company ended its exclusivity agreement with Amazon for the purchase of commercial electric vans.
Basically, Rivian manufactures two types of vehicles – an SUV named R1S and a pickup truck named R1T. The company also produces an electric vehicle, which was only available to Amazon, as the latter owns a significant stake in Rivian.
According to NASDAQ.com,
“In Q3, Rivian’s revenue was $1.34 billion, which surpassed the Wall Street consensus estimate of $1.31 billion. This result was up 149% from the year-ago period and up 19% from the prior quarter. Revenue was primarily generated from vehicles delivered in the quarter.”
In the third quarter itself, Rivian produced a total of 16,304 vehicles, which was up from 17% in the second quarter. Furthermore, in the third quarter, the company also delivered 15,564 vehicles, which was 23% higher than the prior quarter.
In addition to that, the loss of operations for Rivian was $1.44 billion in the third quarter. This number is 19% narrower than the loss of operations in the same period last year.
There were many more advancements for Rivian in the third quarter. Hence, Investors were exceptionally pleased with the company’s increase in production outlook.
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