The stock's rise is primarily attributable to management reaffirming its 2022 vehicle production guidance of 25,000 vehicles. It's also surely getting a tailwind from the strong market, which is surging following October inflation data coming in better than widely expected.
As background, Rivian has launched three all-electric premium vehicle models, including R1T (pickup truck), R1S (SUV), and EDV ("electric delivery vehicle"). At this point, the company is only producing vans for Amazon, which owns a significant stake in Rivian. However, in September, Rivian formed a partnership with Mercedes-Benz, in which the two automakers will jointly operate a factory in Europe for the production of large electric vans.
Now, here's an overview of Rivian's third quarter and outlook, centered around nine key metrics.
1. Revenue of $536 million
In Q3, Rivian's revenue was $536 million, which fell short of the Wall Street consensus estimate of $551.6 million. This result was up from $1 million in the year-ago period and 47% higher than in the second quarter of this year. Revenue was primarily generated from vehicles delivered in the quarter.
2. Produced 7,363 vehicles
During the third quarter, the company produced 7,363 vehicles, up 67% from 4,401 in the second quarter. That second-quarter result, in turn, was up 72% from 2,553 in the first quarter.
In Q3, Rivian delivered 6,584 vehicles, up 47% from the 4,467 vehicles that got new homes in the second quarter.
The quarter's production and delivery numbers weren't a surprise, as the company released this data in early October.
3. R1 preorder backlog of over 114,000 as of Nov. 7
As of Nov. 7, Rivian had a backlog of over 114,000 preorders from consumers in the United States and Canada for its two R1 models, the R1T pickup and R1S SUV. This number is up from just over 98,000 preorders at the end of the second quarter.
That preorder backlog increasing is a sign of healthy demand. At this point, the company can't keep up with demand, though the recently added second production shift at its Illinois factory is helping it rev up production.
These preorders are in addition to an initial order of electric vans made by Amazon.
4. Continued rollout of Amazon's 100,000 delivery vans
Rivian continues to fulfill Amazon's initial order of 100,000 custom-designed electric delivery vans.
5. Operating loss of $1.8 billion
Loss from operations was $1.77 billion, which is 129% wider than the operating loss of $776 million in the same period last year.
6. Adjusted net loss of $1.4 billion
Reported net loss was $1.72 billion, compared with a net loss of $1.23 billion in the year-ago period. Loss per share was $1.88, compared with $12.21 in the year-ago quarter. (The loss per share decreased because the company's November 2021 initial public offering (IPO) greatly increased the number of shares.)
Adjusted for one-time items, the net loss was $1.44 billion, or $1.57 per share, compared with a loss of $776 million, or $7.69 per share, in the year-ago period. This result beat the adjusted net loss per share of $1.82 that Wall Street had projected.
7. Cash used in operations was $1.4 billion
In Q3, Rivian used $1.37 billion in cash running its operations, compared with using $685 million in cash it used in the year-ago period.
The increase in cash used in operations was largely due to the continued ramping up of production at the company's factory in Illinois, as well as the continued scaling up of its corporate operations and research and development activities.
Free cash flow was -$1.67 billion, compared with -$1.15 billion in the year-ago period.
8. Had $13.8 billion in cash, cash equivalents, and restricted cash at quarter's end
Rivian's liquidity position remains solid. It ended the quarter with $13.8 billion in cash, cash equivalents, and restricted cash on its balance sheet.
At the company's current cash-burn rate of $1.67 billion per quarter, its cash balance would last about 8.3 quarters, or just over two years.
9. Reaffirmed annual production guidance of 25,000 vehicles
Rivian reaffirmed its 2022 production forecast of 25,000 total vehicles. In its shareholder letter, it said that its "core focus remains on ramping production," and that it believes "supply chain constraints will continue to be the limiting factor of our production."
The auto industry has been battling significant supply chain issues this year, largely related to semiconductors and primarily stemming from China's strict COVID lockdown policies.
Good news: No surprises
There were no surprises in Rivian's third-quarter report, which was good news. Investors were primarily focused on 2022 production guidance and were rightfully pleased that the company remains on track to churn out 25,000 vehicles this year.
Rivian is one of just a few pure-play EV makers that deserves a spot on your stock watch list.