Rivian Automotive Inc (NASDAQ:RIVN) shares fell after-hours even though first-quarter results from the electric truck-maker beat or met Wall Street forecasts.
The Normal, Illinois-based company, whose R1S sports-utility vehicle was the fourth best-selling electric vehicle in the US during the quarter and the best-selling large luxury SUV in California across both electric and combustion engine vehicles, generated $1.20 billion in revenue during the period, which was down on the preceding three quarters but outperformed average analyst forecasts of $1.18 billion.
During the quarter, 13,980 vehicles were produced and 13,588 delivered, exceeding internal expectations, but a negative gross profit per vehicle delivered of $38,784.
Loss per share was $1.27, matching analysts' predictions, as operating loss was roughly flat at $1.48 billion but exceeding expectations of $1.30 billion.
CEO RJ Scaringe hailed several milestones seen in quarter, including a retooling upgrade and unveiling of a new "midsize platform", which underpins the planned R2, R3, and R3X models.
The retooling upgrade is anticipated to deliver significant improvements in material, depreciation and conversion costs, making the company "confident in its path to achieving modest gross profit in the fourth quarter of this year".
A decision was made in the quarter to move production of the R2 (pictured) to the existing Normal plant, instead of its upcoming Georgia factory, which Rivian said should save it more than $2.25 billion and speed up the production timeline, with ramp-up set for the first half of 2026.
The shares are trading 6.3% lower in pre-market at $9.60, undoing much of the 15% rise from last month's all-time lows in the run-up to the earnings release.