Shares of Rivian Automotive Inc (NASDAQ: RIVN) are trading up in extended hours after the EV company reported a narrower than expected loss for its fiscal first quarter.
Rivian stock up on production guidance
The EV stock is being rewarded also because unlike peers (Lucid and Fisker), Rivian did not trim its production guidance for the full year.
The California-based company remains committed to producing 50,000 vehicles in 2023, as per its letter to the shareholders. According to Truist Securities analyst Jordan Levy:
Every step they can show that production is on trend, given the supply chain issues they’ve had, is a big positive. Investors want to see Rivian spend less, lower cash burn, hit production targets. Rivian gave us that.
Earlier this year, the electric vehicles manufacturer lowered its headcount by 6.0% to cut costs. Rivian stock is still down nearly 30% versus its year-to-date high.
Are Rivian shares worth buying here?
Rivian ended the quarter with $11.8 billion in cash and expects capital expenditures to be capped at about $2.0 billion this year. On Yahoo Finance Live, Levy added:
What Rivian has talked to previously is the power semiconductor availability being the gating factor to ramp production. It seems, based on conversations we’ve had, that’s trending in the right direction.
The Truist analyst is super bullish on the company’s partnership with Amazon as well. His $28 price target on the Rivian stock suggests it could nearly double from here.
Last month, Rivian said it delivered 7,946 vehicles in Q1 – down over 1.0% sequentially.
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Source : https://invezz.com/news/2023/05/09/buy-rivian-stock-after-q1-earnings/