Rivian raises production forecast after beating quarterly revenue estimate

Rivian Automotive reported better-than-expected third-quarter revenue on Tuesday and raised its production forecast for the full year by 2,000 vehicles to 54,000 units.

Shares of Rivian, which closed 1.4% higher, rose more than 3% in extended trading.

The electric-vehicle maker also said it will end its exclusivity deal to largest shareholder Amazon for its electric delivery van, opening the door for more customers around the world

Rivian added it was speaking with more customers who are interested in the Rivian Commercial Vehicle platform, which underpins its electric delivery vans, and reiterated its commitment to fulfilling the order of 100,000 vans to Amazon by 2030.

The company had previously said sales of its higher-priced SUV have been strongly outpacing R1T and has started to realize the effects of its price hikes from March last year, improving the average selling price of its vehicles.

Rivian had reported third-quarter deliveries above market expectations last month.

The company has stayed away from cutting prices and has instead taken to making its Enduro powertrains in-house to reduce its dependency on suppliers and slash costs, a move widely appreciated by investors and analysts.

Revenue for the July-September period stood at $1.34 billion, compared with Wall Street estimates of $1.33 billion, according to LSEG data.

The company reported a net loss of $1.37 billion for the third quarter, compared with a loss of $1.72 billion a year earlier.

Cash and cash equivalents at the end of the September quarter were $7.94 billion, compared with $9.26 billion in the preceding three-month period.