Rivian Automotive Inc (NASDAQ:RIVN)’s hiked full-year production target marked the key positive in Tuesday’s mixed post-market second-quarter results.
Despite missing consensus estimates of US$1.41 per share earnings, Rivian lifted the number of vehicles it expects to produce this year from 50,000 to 52,000.
This followed a 50% jump in the number of cars the US manufacturer produced in the second quarter compared to the first to 12,640.
Tuesday’s target hike came “due to the progress we have seen to date on our production lines, the ramp of our in-house motor line, and the supply chain outlook,” the company said.
Rivian was also optimistic on full-year earnings and its capital expenditure expectations, which were raised and lowered respectively.
It now expects a pre-tax loss of US$4.2 billion, compared to a previously guided US$4.3 billion deficit, while capital expenditure should sit US$300 million lower than initially thought at US$1.7 billion.
“Increasing our production is the primary lever in our path to profitability,” the company added.