Rivian (NASDAQ:RIVN) released its second-quarter results, showing mixed performance while reaffirming its full-year loss and production forecasts. The electric vehicle maker still projects a $2.7 billion adjusted EBITDA loss but expects a modest gross profit by the end of 2024.
For Q2, Rivian reported revenue of $1.158 billion, slightly below the $1.165 billion anticipated by Bloomberg consensus. The company also recognized $17 million from the sale of regulatory credits. Rivian’s adjusted loss per share was $1.13, which was narrower than the expected $1.20, and its adjusted net income loss was $1.115 billion compared to the anticipated $1.194 billion.
Rivian has reaffirmed its adjusted EBITDA loss forecast of $2.7 billion for 2024, with capital expenditure reaching $1.2 billion. The company has taken significant steps toward profitability with modifications to its R1 platform and expects to achieve a modest gross profit in Q4 of this year.
Shares of Rivian fell more than 2% in after-hours trading.
“Q2 has been a defining period for Rivian. We have demonstrated strong execution with the plant retooling upgrade and the launch of second-generation R1 vehicles,” said CEO RJ Scaringe. “The updates to the R1 platform have allowed us to lower material and manufacturing costs while enhancing performance and capabilities.”
The factory retooling impacted Rivian’s Q2 deliveries. The company reported producing 9,612 vehicles at its Normal, Illinois plant and delivering 13,790 vehicles. These figures were lower than the 13,980 produced and 13,588 delivered in Q1. Rivian attributed the lower numbers to factory shutdowns for retooling.
Rivian’s updated R1T and R1S models, along with aggressive lease financing, may drive new sales. The new vehicles became available for order in June, and the company expects the majority of 2024 deliveries to be second-generation R1 models. Rivian has maintained its annual production guidance of 57,000 vehicles despite the Q2 decline.
By the end of Q2, Rivian had $7.867 billion in cash and cash equivalents, up from $5.98 billion at the end of Q1. This increase was bolstered by a joint venture deal with Volkswagen (OTC: VWAGY), announced in June. Volkswagen will invest an initial $1 billion in Rivian through an unsecured convertible note, with up to $4 billion in additional investment through 2026, totaling $5 billion.
The joint venture aims to develop next-generation software-defined vehicle architectures for both companies’ future EVs, with the R2 platform expected to start production in the first half of 2026. Rivian highlighted that while the joint venture’s core technology will be shared, its vehicles will maintain unique user experiences and benefits from its integrated propulsion and autonomous driving systems.
This new capital alleviates concerns over Rivian’s financial runway as the company prepares for the release of its next-generation R2 and R3 mass-market SUVs.
Featured Image: Megapixl
