Rivian (RIVN) Stock; Slides 9% as R2 Ramp Requires Up to 74% Delivery Growth
TLDRs;
- Rivian stock fell 9.6% despite beating revenue and adjusted loss expectations in the second quarter.
- Investors focused on the need for at least 74% delivery growth to meet annual targets.
- Automotive operations remained unprofitable, while software and services generated the companyโs gross profit.
- Rivian ended June with $5.31 billion cash and raised additional liquidity through a July share sale.
Rivian Automotive shares fell sharply after investors looked beyond the companyโs quarterly earnings beat and focused on the scale of the production ramp needed for its upcoming R2 vehicle. The stock closed at $15.22 on Friday, down 9.6%, with trading volume well above normal levels, signaling a strong negative reaction from the market.
The selloff came even though Rivian reported better-than-expected second-quarter results. Revenue rose 27% year over year to $1.658 billion, topping analyst estimates of $1.51 billion. Adjusted loss per share improved to 46 cents, better than expectations for a 63-cent loss. Deliveries increased to 12,194 vehicles, while gross profit turned positive at $179 million, compared with a gross loss in the same period last year.
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