Rivian Automotive Inc RIVN CEO RJ Scaringe spoke to the robust demand the Irvine, California-based company is seeing for its vehicles following its third-quarter (Q3) print.
What Happened: Rivian exceeded analyst expectations in Q3. The electric vehicle (EV) maker reported revenue of $1.337 billion, beating estimates of $1.327 billion and a loss of 1.19 per share, beating estimates for a loss of $1.32 per share.
After producing 16,304 vehicles in the third quarter, Rivian raised its 2023 production guidance to 54,000, citing production advancements and supply chain improvements.
Related Link: Rivian Cruises With Open Options In EV Space, Not Just Amazon: 6 Analysts Peek Under the Hood Post-Q3
Why It Matters: Around 80% of Rivian's customers have never owned an EV before, Scaringe told CNBC's "Squawk Box."
The company is acting as the gateway to electrification for a lot of consumers, he said.
"Ultimately, it's the... manifestation of the product features, the product design coupled with the positioning, the branding that we've built around the business, around the products that's really connected with customers and is resonating extremely well," Scaringe added.
The Rivian CEO didn't seem concerned about competition in the electric truck space, citing how the industry needs choice in order to make a complete transition to electric.
"So we think it's very healthy and very important that manufacturers outside of ourselves create products that are compelling," he said.
Eventually, 100% of all truck sales will be electric, Scaringe predicts. However, you still have to be able to connect with consumers in order to generate sales and that's what Rivian is focused on doing well, he said.
"The product attributes, the features, the branding and sort of positioning of the product all really matter," Scaringe said.
RIVN Price Action: Rivian shares were down 3.36% at $16.84 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Rivian.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
