Dear RIVN Stock fans, mark your calendars for May 11th
This morning, Rivian (NASDAQ:SHORE) hit a new all-time low of $22.45 as the S&P500 and Nasdaq Compound lost more than 3%. While some of the pain came as part of a broader sell-off, today also marked the expiration of Rivian’s initial public offering (IPO) lockdown for early investors and insiders. About 800 million shares will be available for sale following the expiration of the lockup.
During the weekend, Ford (NYSE:F) announced that it would sell 8 million shares at a price of $26.90. Prior to the sale, Ford owned 102 million shares, or 12% of all shares.
Another significant player in RIVN stock is Amazon (NASDAQ:AMZN). Investors learned that JP Morgan (NYSE:JPM) is also selling 13-15 million shares of Rivian for $26.90. However, Amazon has not confirmed that this sale corresponds to its holdings. The e-commerce giant last said it holds about 158 million shares, or an 18% stake.
After Monday’s bloodshed, there is yet another catalyst on the horizon that will certainly affect Rivian.
RIVN Stock: Rivian to Report Earnings May 11
The electric vehicle (EV) company has confirmed that it will release its first quarter results on May 11 after the market closes. In its last earnings report, the company said it had 83,000 reservations for its R1T and R1S models, as well as a pre-order of 100,000 vehicles from Amazon. For 2022, Rivian plans to produce 25,000 vehicles, down from an earlier forecast of 50,000 vehicles. By the end of March, Rivian had produced 3,568 vehicles, so investors expect a sharp ramp-up in production. Any 2022 forecast for less than 25,000 vehicles produced could send RIVN stock plummeting.
At the end of 2021, Rivian was in good health $18.4 billion in cash at hand. In March, the company said it plans to spend about $8 billion in cash by the end of 2023.
For the first quarter, analysts expect sales of $130.5 million and an earnings per share (EPS) loss of $1.44. For the second quarter forecast, analysts expect $338.9 million in revenue and an EPS loss of $1.45. The guidance will be a major factor in Rivian’s earnings report, as investors will want to know how supply chain issues will affect the company going forward.
Competitor EV Lucid (NASDAQ:LCID) reported earnings last week, which may give some clues as to how Rivian’s earnings will turn out. Lucid now has 30,000 reservations for its Air models and an order of up to 100,000 vehicles from Saudi Arabia. Additionally, the company maintained its 2022 production forecast of between 12,000 and 14,000 vehicles. Still, chief financial officer Sherry House warned that “any prolonged disruption could impact our production forecast”.
As of the date of publication, Eddie Pan held a long position in AMZN. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.