Earnings Results: Rivian raises production guidance for the year, ends exclusivity deal with Amazon for its vans

by | Nov 7, 2023 | Stock Market

Rivian Automotive Inc. late Tuesday posted a narrower quarterly loss and surprised Wall Street by raising its production guidance for the year and ending its exclusivity deal with Amazon.com Inc. for its delivery vans. In a call with analysts following results, Rivian
executives also pushed back against fears of slower demand for EVs. In recent weeks, carmakers such as Ford Motor Co.
and General Motors Co.
announced pauses or slowdowns in their EV investments.

Rivian is “deeply” convinced “that the entire automotive industry will be transitioning to electric over the next one to two decades,” Chief Executive RJ Scaringe said. “We’ve built and designed our business around this transition.” In the short term, however, there are macroeconomic and geopolitical pressures impacting consumers and businesses, “most notably the increase in interest rates,” Scaringe said. Also see: Lucid cuts production guidance, quarterly revenue falls Rivian also amended its exclusivity deal with Amazon.com
to provide electric last-mile delivery vans, opening up for deals with other companies. The vans, as well as software and services, can provide “value” for fleet customers, and Rivian is in “active discussions with a number of large potential fleet customers to launch pilot programs,” Scaringe said. Rivian lost $1.37 billion, or $1.44 a share, in the third quarter, compared with a loss of $1.72 billion, or $1.88 a share …

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