Toronto, Ontario — In this weekly Tuesday Ticker, Rivian announces two new models and sees a stock rise as a result, while AutoCanada reports its fourth-quarter 2023 financials.
Rivian revs its stock with new model announcements
Rivian saw a nearly 25 percent increase in its share prices following last week’s announcement of two new models—the R2 and R3 all-electric SUVs.
These new models are intended to be more accessible to a greater driver audience, with the R2 ringing in at around US$45,000 and the R3 at an even lower cost, though Rivian did not specify an MSRP for the R3 model.
The all-electric OEM’s CEO, R.J. Scaringe, did clarify that the R3 will also include an “off road rally racing car”-esque model, with capabilities of reaching 60 miles-per-hour (X) in under three seconds.
The R2 and R3 are also said to tout a far greater range, with up to 480 kilometres of travel on a single charge. For comparison, the R1S SUV and R1T pickup boast ranges of between 480 kilometres and and 515 kilometres for the R1S, and up to 550 kilometres on a single charge for the R1T.
As of 12:30 p.m. E.T. Monday, shares of Rivian traded at US$13.32 per share, up 23.37 percent in the past five business days.
AutoCanada’s earnings
According to AutoCanada’s Q4 results, the company experienced solid growth across all marks—but there was a decrease in used vehicle sales, particularly in the U.S. market, due to higher interest rates and consumer preferences for affordable vehicles with minimal financing.
Revenue was $1,483.8 million, compared to to $1,388.2 million a year prior, marking an increase of 6.9 percent.
Net loss for the period was $22.5 milllion, versus $14.8 million loss the prior year.
In terms of financial highlights, consolidated revenue increased due to higher new vehicle sales and contributions from parts, service, and collision repair operations, offset by lower used vehicle sales in the U.S. Gross profit also increased, driven by new vehicle sales, parts, service, and collision repair operations, as well as recent acquisitions.
However, operating expenses and floorplan financing expenses both increased, leading to a net loss for the period.
Adjusted EBITDA and adjusted EBITDA margin decreased primarily due to higher operating expenses and increased flooring expenses. Despite the challenges in the market, AutoCanada remains committed to its strategic plan and acknowledges the support of its OEM partners.
