Rivian Automotive, Inc. (NASDAQ:RIVN) shares fell sharply in Wednesday’s premarket session, a day after the EV maker reported its first-quarter results.

The company reported quarterly revenue of $1.204 million, exceeding the consensus estimate of $1.16 billion. The loss per share of $1.45 was more than the $1.25 loss estimated by the Street. The company maintained its 2024 production guidance of 57,000 units.

CFO Claire McDonough said on the earnings call that the 2024 capital expenditure guidance stands reduced by $550 million to $1.2 billion, attributing the cut to the savings stemming from the decision to move the first line of R2 production to the Normal, Illinois plant.

Some of the weaknesses may have to do with Rivian not clarifying the rumors about a potential Apple pact. On Tuesday, the stock was up 8.61% at one point on the rumor before giving back the gains and settling down 0.77%, weighed down by broader market weakness and apprehensions ahead of earnings.

Commenting on the results Future Fund’s Gary Black said the negative stock reaction may have to do with Rivian reporting a larger-than-expected free cash flow loss of $1.5 billion. The first-quarter EBITDA of a negative $798 million beat the consensus estimate for a negative $858 million, he said.

The fund manager, however, did not rule out a reversal in sentiment. While noting that Rivian’s short interest was at 16.5%, he said, “Without a major negative surprise, we could see some shorts try to close their short positions.”

Black-led Future Fund Active ETF (NYSE:FFND) holds 15,796 Rivian shares valued at $161,909. The stock accounted for 1.43% of the portfolio weighting.

In premarket trading, Rivian fell 4.39% to $9.80, according to Benzinga Pro data.

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