Rivian Q2 Earnings Preview: Amazon, Tesla Are Part Of This EV Story, Analyst Sees 'Strong Potential For Further Gains'

Rivian Automotive Inc RIVN is set to report second-quarter financial results after the bell. A look in the rear-view mirror shone some light on what investors could expect from the EV maker after the close. 

What To Know Ahead Of The Print: Rivian is expected to report a second-quarter loss of $1.41 per share on revenue of $978.88 million, according to estimates from Benzinga Pro.

The Amazon.com, Inc. AMZN-backed EV maker delivered an upside earnings surprise in five straight quarters.

Rivian's top-line results are more inconsistent. Since going public in late 2021, the company has beat revenue estimates in three quarters and missed estimates four times.

Last quarter, Rivian exceeded analyst expectations on both the top and bottom line. Revenue of $661 million beat estimates of $642.22 million and a loss of $1.25 per share was better than analyst forecasts for a loss of $1.58 per share.

Rivian said it remained on track to produce 50,000 vehicles in full-year 2023. 

"Our 2023 production guidance of 50,000 units implies a doubling of capacity utilization which we believe will result in significantly lower fixed cost per vehicle, and we expect production volumes to increase further in 2024," the company said in a letter to shareholders.

Rivian released second-quarter production and delivery numbers last month, so vehicle output figures won't come as a surprise, but investors will want to watch for any updates on production in the current quarter and any guidance for the second half of the year.

The EV maker produced 13,992 vehicles in the second quarter and delivered 12,640 vehicles.

Rivian also announced the adoption of Tesla Inc's TSLA North American Charging Standard (NACS) in the second quarter. At the time, the company said NACS charging adapters could be available as soon as spring 2024. An updated timeline for adoption should be on investor radars. 

Check This Out: How Big Is Elon Musk's Tesla Cybertruck? New Photo Next To Rivian R1T Reveals True Scale

On Monday, Truist Securities analyst Jordan Levy maintained a Buy rating on the stock and increased the price target from $28 to $30. The analyst noted that shares have seen a "significant uptick" since the company announced the charging agreement with Tesla and released preliminary delivery and production numbers.

Levy said he would be looking for continued progress toward positive gross margins in 2024, incremental R2 details and potential updates on opening up its electric delivery van platform beyond its partnership with Amazon. 

"We see strong potential for further gains heading into earnings on expected sequential margin improvements from recent EDV upgrades, LFP/overall battery pack price reductions and an improving supply chain," the Truist analyst said in a note to clients.

Following the release of Rivian's second-quarter results, management will hold a conference call to discuss the numbers at 5 p.m. ET.

RIVN Price Action: According to Benzinga Pro, Rivian shares were up 0.81% at $24.30 Tuesday morning ahead of the company's quarterly results.

Photo: Courtesy of Rivian