EV maker Rivian posted a $1.7 billion operating loss but says it's ramping up production despite ongoing supply chain issues. Cheddar News speaks with Dan Ives, Managing Director and Senior Equity Analyst and Wedbush Securities about why he maintains his positive outlook for the company. 

Closing Bell

Why Analysts Remain Bullish on Rivian Despite Widening Losses

well, electric vehicle maker Rivian reporting its june quarter results yesterday saying it lost $1.7 billion in the second quarter as it works to ramp up its production amid the ongoing supply chain crunch. Well there's more than double the number from the same period last year and it lost about 500 $80 million Dan Ives, managing director and senior equity analyst at Wedbush Securities Dan, always good to see you, especially on a Friday. So despite a widening loss on the bottom line, I know you still are bullish on the stock. What are some of the positive signs that you see that allow you to maintain your outlook? Yeah, this is really all about the production story. I mean, if you look at Rivian initially coming out of the gates on the IPOSA disaster because of the supply chain as well as a lot of the communication now it's sort of get back on track, I mean supply chain starting to moderate deliveries look strong 25,000 for the year and reservations went up and I think that's the important thing in our opinion, despite what's been a very, very bumpy ride within this story is really starting to turn interesting. So is Rivian in a different position dan than other vehicle makers. Every vehicle maker out there is trying to turn into Evey some have deeper pockets than Rivian to actually do this, but is its supply chain challenges any different from what others are going through. It's a great question, I look, I think if you look because it was the golden child of Bezos and Amazon, this is not a startup. Like some of the other E. V players, a massive factory that they built out in Illinois, that we're building another one, you know, outside of Atlanta. And and this is important because Amazon that's 100,000 commercial vehicles that they have lined up and they have significant and we're telling 14, 15 billion of cash of runway to sort of build this out. I think it's a special story. And and in my opinion, it's sort of in the E. V. Space. It's one of what I've used to clear long term winners, interesting. So what do we know about demand and where is it coming from? Who's the typical customer? And how confident are you that demand for these vehicles can be sustained? Yeah, really, And it's a unique vehicle for anyone that started to see it around the country pop up more of a lifestyle vehicle in terms of E. V. S. And then we'll call it in that, you know what I'll call a unique category, in terms of sport utility. You're starting to see more and more on the pickup truck, of course forward next year with the F 1 50 this is going after. I mean, look at price 500.75 80,000. But it's really if you look at what Tesla did Rivian is really trying to do that on the lifestyle side and if you look at the opportunity in the market, we think we're looking at what could be 2, 300,000 run rate per year as we get into 2024 2025. And I think that's really the story here, I think when you look at other players in the V Rivian well, position, okay, so my guess dan and you're the expert here, but my guess is that the ford F 1 50 Lightning, the electric ford F 1 50 truck, the F 1 50 traditional gas powered vehicle that's so popular across America that that might be Rivian is biggest competition. How does the clientele differ? Why would someone buy a Rivian versus an F 1 50 Lightning? Yeah, look, I think, first of all, I think F150 next year is gonna be a seminal release, I think it's gonna be a big part of success that farley in Florida with TV strategy Caribbeans more lifestyle. I mean if you look from a software perspective, it's very what are called tripped out in terms of, from a software vertical integration. You know, you could get some additions like a barbecue, that's actually in the actual vehicle that pops out a tent that that could pop out in terms of for camping, what RJ and the team have done here is really sort of revolutionized the vision of where Rivian could go and now it's about building the cars and delivering them. Mhm. Alright, dan Ives, we're gonna leave it there. Great to get your take on this friday, per usual dancing managing director and senior equity analyst at Wedbush Securities.