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Rivian earnings: What to expect from EV production

Yahoo Finance's Pras Subramanian previews Rivian earnings and what to expect in terms of production.

Video Transcript

AKIKO FUJITA: A big brand here. Of course, Rivian reporting today. What do we see in the numbers there? And did we get a little more color on the kind of bump they're likely to expect from the Inflation Reduction Act?

PRAS SUBRAMANIAN: So with regards to earnings, the big thing is going to be that production forecast. Can they maintain that 25,000 vehicle unit per year, for 2022, that they had mentioned before? As of right now, they made around 4,400 trucks last quarter, 2,500 in Q1, so they got to make 19,000 trucks ish in the back half of this year. That's a tall order for them.

We'll see if they can actually say that, hey, we can actually do that. We have a good chance of doing that. Our factory's coming online faster than we thought it would. Maybe we can do that. So that's a big question for investors, you know.

From a top line point of view, they're looking at $335 million in revenue and a loss of $1.61. So that's, like, the kind of headline numbers, but it's going to be all about their forecast and what the IRA. You know, I have done some reporting here on what Rivian is doing. They're actually, right now, sending people these actual binding purchase orders. If you put 100 bucks--

AKIKO FUJITA: You can lock in the $7,500.

PRAS SUBRAMANIAN: Yes, and the consideration is $100 of your deposit is non-refundable. That's part-- that's a consideration for you. You're actually signing a binding contract. And they're saying that hopefully this will allow you to preserve that tax credit because most of these trucks are around $90,000 when they're optioned up. So that's already waived beyond the IRAs limit of $80,000 for trucks and SUVs. So we'll see how that works out.

AKIKO FUJITA: They have the supply?

PRAS SUBRAMANIAN: Well, I mean, as of right now, they have 90,000 preorders, and they're making, what, 4,000 a quarter? You do the math, right? It's going to be like 10 years. I mean, it's going to be a long time.

AKIKO FUJITA: OK, we'll be looking out for your story. Pras Subramanian, thanks so much for that.