Why one metric will be key

When EV maker Rivian (RIVN) releases its second quarter financial report tonight after the bell, all eyes will be on one key metric.

Like Tesla, Lucid, and even GM and Ford before it, investors are keenly watching what Rivian CEO RJ Scraringe and team will say about the company’s annual production forecast, currently sitting at 25,000 vehicles for the year.

In Q1 of this year Rivian produced 2,553 vehicles, and in Q2 the company revealed it produced 4,401 vehicles, a healthy jump in production. Given those numbers, Rivian will need to make around 19,000 trucks in the second half of the year to meet its 2022 forecast, which could be a stretch for a company still trying to ramp up its production capabilities.

Some on Wall Street are bullish heading into the report. “The performance last quarter coupled with the 2Q delivery numbers show that Rivian (and the management team) is finally starting to get their act together and live up to some of the massive hype for the company,” Wedbush analyst Dan Ives said in a note today.

Turning to the balance sheet and key financial metrics, the Street is looking for Rivan to report $335.7 million of revenue, with an adjusted EPS loss of $1.61. This would equal an adjusted net income loss of $1.52 billion for the quarter.

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Looking beyond Q2, any commentary on production capacity at the factory in Normal, Illinois or preorder information regarding the R1T and R1S trucks (90K as of last quarter) will also be welcome news.

R.J. Scaringe, Rivian’s 35-year-old CEO, introduces his company’s R1T all-electric pickup and all-electric R1S SUV at Los Angeles Auto Show in Los Angeles, California, U.S. November 27, 2018. REUTERS/Mike Blake

Yahoo Finance has also confirmed that Rivian is now having preorder reservation holders to sign binding purchase agreements in order to preserve the current $7,500 federal tax credit for purchasing an EV. Under the current wording of the Inflation Reduction Act, which may get a House vote later this week, many Rivian orders would be disqualified due to MSRPs above $80,000, or potential buyers being disqualified if their adjusted gross income tops a certain threshold. Rivian’s management team will likely be asked about this new order process on the call.

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Other items of note in the quarterly report and on the call afterwards is whether Scaringe and management have anything more to say about the recent layoffs at the company, which affected 6% of the workforce and if Rivian is still plagued by component and chip shortages. In the call following last quarter’s earnings report, Scaringe said Rivian had seen “the worst of the supply constraints,” indicating the situation might be improving.

Rivian shares are trading higher today, but are down a considerable 63% year to date.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.

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