What happened
Electric vehicle (EV) investors are eagerly awaiting the fourth-quarter 2022 results that Rivian Automotive (RIVN 3.48%) will report after the closing bell today. The stock is jumping ahead of that report. Shares were holding onto a 4.6% gain as of 1 p.m. ET.
So what
Rivian already let investors know it nearly met its target by producing 24,337 vehicles last year. But the company entered last year with the equipment and procedures in place to make 50,000 units. Supply chain issues and other headwinds forced it to scale back production. That led to a nearly 70% drop in shares over the past year.
Investors are now hoping that those problems are behind the upstart EV company and are expecting to hear Rivian will produce and deliver at least 60,000 vehicles this year.
Now what
The struggles in 2022 led Rivian to reduce its capital expenditure target from the initial $2.6 billion to $1.75 billion by the time it reported its third-quarter results. This afternoon, all eyes will be on whether that cutback will affect its ability to boost production to the expected levels for 2023.
Unlike other start-up EV makers, Rivian has continued to see an increase in its preorder backlog throughout 2022. As of Nov. 7, the company said it had more than 114,000 preorders for its R1 platform pickup truck and SUV models.
Image source: Rivian Automotive.
If Rivian comes up short on its production and sales estimates for next year or if reservations show a decline, investors can expect analyst downgrades to follow. The stock will likely take a hit if that's the case. If it meets expectations, though, don't expect the stock to rocket higher.
Even after the stock has plunged over the last year, Rivian is valued with a market cap of nearly $18 billion. It will take execution and results to help justify that valuation. Regardless, interested investors should tune in to the company update after the bell and the conference call from management scheduled for 5 p.m. ET today.
