What happened
Rivian Automotive (RIVN -3.71%) is standing out among electric vehicle (EV) start-ups as a string of first-quarter earnings reports are being released. Investors are cheering Rivian's report, boosting the stock by as much as 13.6%.
As of 10:37 a.m. ET, the stock remained higher by 8.9%. The jump has helped Rivian shares gain almost 20% in the last week.
So what
One reason the shares popped was because Rivian reaffirmed its production outlook for the full year. The company still expects to produce 50,000 EVs -- twice what it manufactured last year. That stands out as peers including Lucid Group and Fisker both just lowered 2023 production guidance. Rivian also reduced operating expenses versus the prior year period and trimmed its net loss for the quarterly period.
Image source: Rivian Automotive.
Now what
Rivian ended the first quarter with $11.8 billion in cash and equivalents on its balance sheet. That was only moderately lower than the $12.1 billion it held as of Dec. 31, giving investors a reason to be relieved that the company maintains enough capital to invest in growth.
Another factor soothing investor angst was the average selling price Rivian realized for its vehicles in the quarterly period. Revenue of $661 million from its delivered vehicles worked out to an average cost of over $83,000 per vehicle. That compares to about $81,500 per vehicle on average for 2022.
That shows investors that the company can recover at least some of the higher raw material costs that came from a high inflationary environment. Seeing higher realized prices, along with confidence in the ability to double annual production in 2023, has investors thinking Rivian may be on the right track toward profitability.
