Rivian stock wavers amid $1.7 billion loss and EV delivery figures

Yahoo Finance reporter Pras Subramanian discusses Rivian shares being volatile after its disappointing second-quarter earnings results.

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PRAS SUBRAMANIAN: So sticking with EVs here, I'm watching Rivian also. One day after earnings, the stock bouncing around, now up slightly-- oh, now it's down again. It was up earlier today. For Rivian, it's a tale of the good, the bad, and the unknown, right?

The good is the company maintaining its production forecast, adding a second shift to the line. The bad, a huge loss report for the quarter, and they're forecasting a larger loss for the year. In the unknown category, management was a bit cagey in the call last night. [INAUDIBLE] when the factory will be at full capacity, and they couldn't give us a forecast and weekly production figures because of component shortages. So like I said, some good, some bad, and some unknowns here for Rivian.

AKIKO FUJITA: Yeah, and that comes with investing in the stock, right, Pras? I mean, this is-- the unknowns are there for so many of these up and coming EVs, but it's interesting to see what commentary we got from Rivian on the impact from the Inflation Reduction Act because you were just saying yesterday about locking in the price for $7,500-- $75,000.

PRAS SUBRAMANIAN: $7,500 [INAUDIBLE].

AKIKO FUJITA: $7,500 tax credit. That's a lot of money I was talking about. But that could be a big boost for the company. And the question is, can they meet that demand with their production? And that seems to be the big unknown right now.

PRAS SUBRAMANIAN: Yeah, they talked about how a lot of these cars right now, the ones that are being [? specked ?] now are costing over $90,000. And they have an over 90,000 plus backlog of people who want these cars. So they actually have demand for these high-priced cars that will actually be better for them margin wise. The higher prices, the better for them. But they just can't get them done.

They're saying they're going to hit that $25,000-- 25,000 production capacity at the end of the year. But I don't know-- they can't even give us a weekly production forecast. They can't even tell you how many per week they're going to make because it's all dependent on the actual supply of goods.