Rivian Automotive (RIVN) shares fell about 5% in after-hours trading on Thursday, as investors weighed a stronger-than-expected first-quarter report against ongoing losses and the near-term costs tied to launching the upcoming R2 vehicle.
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Rivian Delivers Steady Quarter
To begin with, Rivian’s core performance remained steady. The company produced 10,236 vehicles and delivered 10,365 during the quarter, broadly in line with recent trends. It also maintained its full-year delivery outlook of up to 67,000 vehicles, pointing to stable production plans.
Financially, the results came in ahead of expectations. Revenue rose more than 11% year over year to $1.38 billion, beating estimates. On the bottom line, Rivian reported a loss of $0.33 per share, significantly narrower than the $0.72 loss analysts had expected.
Even so, profitability is still some distance away as the company continues to invest in growing its operations.
Cash Burn and R2 Spending Weigh on Sentiment
However, despite the solid quarter, investor focus quickly shifted to cash usage. Rivian ended the period with about $5.4 billion in liquidity, down from roughly $6.1 billion in the previous quarter, reflecting ongoing spending needs.
A large part of that spend is tied to the R2 platform. While the model is expected to support future growth, large-scale production is not expected until 2026. As a result, Rivian is heading into a period of higher spending, with the new vehicle not expected to generate meaningful revenue for some time, which appears to be weighing on sentiment.
Going forward, the focus will remain on how well Rivian manages its cash while preparing for the R2 launch. If the company can control spending and stay on track, investor confidence could start to improve.
Is RIVN Stock a Buy, Sell, or Hold?
Wall Street has a Moderate Buy consensus rating on Rivian Automotive stock based on 10 Buys, eight Holds, and four Sells. The average RIVN stock price target of $18.00 indicates about 9.76% upside potential.
