Rivian Automotive (NASDAQ:RIVN) shares rose over 7% in pre-market Wednesday after the electric vehicle (EV) company reported results for the third quarter and raised its annual production target.
Revenue of $1.34 billion came in better than the consensus estimate of $1.31B. EPS for the quarter was ($1.44), compared to the consensus estimate of ($1.34).
Looking ahead, Rivian adjusted its full-year 2023 production outlook, raising the target to 54,000 electric vehicles (EVs), a boost from the previous target of 52,000 units. This revision is attributed to the progress experienced on its production lines, the ramp of its in-house motor line, and the supply chain outlook.
Furthermore, the company announced the termination of its exclusivity deal with Amazon (NASDAQ:AMZN), its largest shareholder, concerning its electric delivery van. This change signifies that Rivian's custom-designed commercial van will now be available for purchase by other companies worldwide.
"While there is still much work ahead for RIVN in reaching breakeven, we believe the 3Q print reflects a clear proofpoint of ongoing progress," analysts at Barclays said in a note.
Analysts at BofA also weighed in positively on RIVN.
"We reiterate our Buy rating on RIVN, which is predicated on our view that the company is one of the most viable among the start-up EV automakers and also a relative competitive threat to incumbent OEMs."
Additional reporting by Senad Karaahmetovic