Shares in electric vehicle maker Rivian Automotive Inc. (Nasdaq: RIVN) in Irvine fell more than 10% today, a day after the company reported second-quarter revenue that beat analysts’ estimates, while its adjusted loss per share was less than projected and the production outlook was raised by 4%.
The shares closed down 9.9% at $22.35 apiece for a market cap of $21 billion and lost another 1.3% in after-hours trading.
Investor website The Motley Fool explained the drop by saying “investors may be shying away from loss-making companies with large year-to-date gains.”
Rivian shares have been on a bullish run since June 26, having almost doubled since then.
“Concerns over inflation and recession remain, putting loss-making stocks under a tougher microscope,” according to The Motley Fool.
Rivian reported an adjusted loss of $1.08 per share, less than the $1.37 analysts were expecting, according to Yahoo Finance.
Revenue of $1.12 billion topped the expectation of $1.01 billion, Yahoo said.
Rivian raised its 2023 production outlook to 52,000 vehicles, up from 50,000.