Rivian has both good and bad news at end of tough day for EV stocks |  CNN Business


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CNN Business

Electric truckmaker Rivian sent a combined bag for buyers in its 3rd-quarter earnings report, soon after a brutal working day for its shares and individuals of other electric powered auto makers.

On the just one hand, Rivian reported a scaled-down than envisioned modified decline of $1.4 billion, much less than the $1.7 billion reduction forecast by analysts surveyed by Refinitiv. And it mentioned that web reservations improved to 114,000 from 98,000 in its second-quarter report.

But its revenue of $536 million, whilst up 47% from second quarter revenue, fell short of analysts’ revenue forecast of $552 million.

The gain in reservations was noteworthy right after electric automobile maker Lucid reported late Tuesday that the number of reservations for its EVs had fallen to 34,000 from 37,000 in the previous quarter’s report.

That news sent Lucid (LCDX) shares tumbling 17% for the day and aided drag down shares of equally Rivian and Chinese EV maker Nio (NIO) by 12% every single in frequent several hours US trading.

Major EV maker Tesla (TSLA) also experienced shares slide 7%, although that could well have been extra affected by information that CEO Elon Musk experienced sold nearly $4 billion worthy of of Tesla (TSLA) shares since he closed the deal to obtain Twitter two months back.

Rivian also reaffirmed its purpose of ramping up creation to create 25,000 motor vehicles this 12 months, a bullish target as other automakers, such as Tesla, who have experienced to trim income targets for the calendar year owing to offer chain difficulties.

In the 1st a few quarters of this yr Rivian has constructed just additional than 14,000 motor vehicles, so hitting the 25,000 creation target for the yr would necessarily mean a 45% maximize in output in the remaining three months of the yr in excess of the 7,400 it created in the just accomplished quarter.

But whilst it claims it remains on target to strike that 25,000 aim for 2022, it pushed again its target day for the availability of its scaled-down R2 model to 2026. It experienced formerly forecast a 2025 rollout for that model.

Shares of Rivian swung wildly on the report in after-hrs buying and selling, initial attaining 3%, then falling to trade a little decreased, then rising 5%.

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