Rivian Automotive, Inc. (NASDAQ:RIVN) shares rose around 10% following the company’s reported Q1 results, with EPS of ($1.43) coming in slightly better than the consensus estimate of ($1.44). Revenue was $95 million, missing the consensus estimate of $130.5 million. 2,553 vehicles were produced and 1,227 vehicles were delivered during the quarter.

The company reiterated its 2022 cost and volume targets despite softer cadence at the start of Q2, signaling large production acceleration ahead and higher confidence in its ability to secure semiconductor supply for the rest of the year.

Most importantly, the company presented its modified strategy to optimize its product roadmap, associated operating expenses, and capex spending, to ensure a path to the R2 launch in Georgia with its $17 billion cash on hand, without the need for additional capital.

Analysts at Deutsche Bank expect capex spending of over $2 billion range per year from 2023 to 2025, down significantly from the previous $3-$3.5 billion range, which should leave enough cash to cover the company’s needs until positive free cash flow.