Why Rivian Shares Soared Thursday
Markets are on the rise today, but shares of Rivian Automotive (NASDAQ: RIVN) are vastly outperforming even the Nasdaq Composite's 5.5% surge Thursday morning. After reporting its third-quarter earnings after the market closed last night, Rivian shares soared more than 18% in early trading. As of 10:45 a.m. ET, the stock remained 14.7% above Wednesday's closing price.
Shares are still down nearly 70% year to date, but today's bounce seems to indicate investors believe it went low enough. Though Rivian's losses continue to mount, there were some positives in the report regarding demand and progress on ramping up production.
Rivian reported a net loss of more than $1.7 billion in the third quarter, but it still held $13.8 billion in cash and equivalents on its balance sheet as of Sept. 30. The electric vehicle (EV) company believes that is enough to fund operations through 2025. It is also throttling back its capital expenditures as it works to build sales through continued supply chain challenges.
Source Fool.com
