Rivian showed better results but expects a deeper loss for the year

• Electric automaker reported better than expected revenue at $364 million versus $337.5 million expected
• Adjusted loss per share was $1.62 versus $1.63 expected
• Net loss for the quarter was about $1.7 billion
• The company said that it has bout 98k net preorders for its R1-series truck and SUV as of end of Q2 (in May it was 90k)
• The company confirmed that it sill expects to make about 25k vehicles this year, in line with guidance provided in March
• Rivian said that it delivered nearly 4.5k vehicles during the second quarter
• However, the company said adjusted loss before income, taxes, depreciation, and amortization will come in at $5.4 billion which is higher than $4.75 billion expected in May
• On the other hand, Rivian expects to lower capital expenditures to $2 billion from $2.6 billion that was guided in May
• Automaker said also that problems with delayed production is linked to supply-chain disruptions and also higher raw material costs
• CEO said in a letter to shareholders that the company couldn’t run a full single shift because of component supply shortage.
• It is worth to remember that company is heavy backed by giant Amazon (AMZN.US)
• The company said that it sill has more than $15 billion in cash to finance its operations, which should be mainly used to finance new manufacturing plant in Georgia

Rivian (RIVN.US) more than doubled from the bottom in May, but looking at chart we can notice that momentum is not very strong. The possible next target for bulls should be seen close to 23.6 Fibo retracement at $58 per share. On the other hand, the nearest support zone can be spotted around $29-30 per share. Source: xStation5