Rivian And Worksport Continue Pursuing Their Ambitious Goals While Nikola Retracts

Amazon.com Inc AMZN-backed EV startup Rivian Automotive Inc RIVN posted a better-than-expected loss, showing that it is in a slightly more favorable position compared to its EV startup peers such as Nikola Corporation NKLA. However, an automotive parts player who promises to play an important role in electrification with its revolutionary solar-powered covers that will enhance several upcoming electric pickups, Worksport Ltd. WKSPWKSPW delivered good news of completing samples of its hard-folding light truck bed covers.

Worksport

The sample covers that are now completed are expected to be shipped to clients who are interested in purchasing large quantities of Worksport’s US-assembled products who are expected to be market-ready upon production. This a very significant milestone as Worksport continues its path towards generating revenue across its product lines. As the manufacturing line was delivered and installed last month, it is now undergoing training what the New York facility staff is undergoing training. Worksport will be soon providing additional information about its newly-redesigned COR advanced hot-swap battery system, which must be tested and completed before its companion SOLIS solar powered tonneau cover can be produced to enhance eagerly anticipated electric pickups.

Rivian

With its first quarter results that barely managed to top earnings estimates, Amazon-backed Rivian succeeded to defy troubles other EV start-ups such as weakening demand and an unfavorable financial position, such as the one shown by Lucid Group Inc LCID earlier on Monday. Rivian generated $661 million in revenue, resulting in a net loss of $1.349 billion. The EV startup backed up by Amazon reported an EPS loss of $1.77.

Counting on Amazon for support, Rivian is working on significantly improving its financial health as it aims for profitability by the end of 2024 while this year, it expects the loss to be $1 billion less than last year or more precisely, $4.2 billion. This is an ambitious goal but CFO emphasized the company’s deduction on lowering overhead cost, reducing the overall cost per unit by introducing production changes while ramping up both production and deliveries. Additionally, it is also opening new production lines for its new battery technology, taking a page from Tesla’s book. Compared to its startup peers like Lucid, Rivian has the liquidity it needs to reach its target, with $11.78 billion in cash reserves.

Although even Rivian, who counts on support from Amazon even for a revenue stream from its van order, is by no means in a favorable position, its performance is showing a few positive signs. It is significantly increasing its manufacturing footprint, as new facilities are being built in Georgia and Kentucky. With a planned production output of 50,000 units this year, customer wait times will be significantly reduced.

Nikola Will Only Focus On Areas Where It Has Competitive Advantages 

The electric heavy truck maker announced it will be exiting its European joint venture to focus on hydrogen trucks in North America. Over the reported quarter, 63 battery-electric trucks were produced, while 31 were delivered to dealers who had 33 trucks to end customers during the reported quarter. Nikola’s quarterly operations resulted in an even wider loss than one made during last year’s comparable quarter, as it amounted to $169.1 million or r 31 cents per share as first quarter revenue amounted to $11.1 million, below the expected $12.5 million, according to Refinitiv’s consensus of analysts.

In an effort to conserve cash, Nikola decided to move away from capital intensive businesses and therefore sold its share of a European joint venture to Iveco Group, Italian heavy-truck maker for $35 million in cash. As of March 31st,Nikola had $121.1 million in cash, dropping from $233.4 million from December 31st, 2022. Nikola reiterated that the longer-range fuel-cell powered version of its semitruck is on track to begin in July with CEO Michael Lohscheller stating that as of now on, Nikola’s focus will on hydrogen fueled trucks along with autonomous technologies. After the report, shares ended the day 13% lower.

While not a single well-known EV startup is performing exceptionally, many are performing far worse than Rivian such as the cash-strapped Lordstown Motors RIDE who warned it might be forced to file for bankruptcy andhalt the production of its Endurance pickup. While many are issuing financial health warnings such as the electric van maker Arrival ARVL, Worksport’s upcoming solar-powered tonneau covers give hope of the eagerly anticipated electric pickups finally coming to life and to the roads as 2023 is deemed to be their year. 

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.