17 December Rivian published the first quarterly report after the IPO. According to the company, due to the shortage of components, it will reduce the production of cars in 2021 by several hundred. After the report, RIVN shares fell by 9%, to 99 $.
What does it do
Rivian is a manufacturer of R1 electric jeeps and EDV electric trucks. Basically, the company can boast only pre-orders: jeeps — 71 thousand, trucks — 100 thousand. Buy all trucks by 2030 Amazon. Like Ford, Amazon is one of the shareholders of the auto company.
By mid-December, Rivian had produced 652 R1 SUVs., 386 of which sold. This year the company planned to assemble 1200 cars, but due to supply disruptions and battery shortages, it will reduce production by several hundred.
So far, Rivian has only one plant., which can produce 150-200 thousand cars per year. By 2024, the company expects to launch another production for 400 thousand cars. The new plant will cost Rivian $ 5 billion.
In the third quarter, which ended 30 september, Rivian sold the first 11 SUVs and earned a million dollars. Net loss for the quarter was slightly more - $ 1233 million.
First after Tesla
Rivian held an IPO 10 November. On the first day, inspired by the success of Tesla, investors began to buy securities of the company from the "hot" industry., despite the complete lack of revenue and profit. A week later, Rivian's shares rose by 60%, capitalization — up to 154 billion dollars, like GM and Ford, put together. By the beginning of December, the share price fell to the level of IPO.
Part of this popularity Rivian owes to analysts. They call the head of the company Superman and state, that only Rivian can challenge Tesla.
Despite such assessments, it's too early to talk about Rivian's success. A company without revenue in the coming years is waiting for billions of capital expenditures. Bank of America estimates, Rivian will report its first operating profit no earlier than 2025.