On June 21, 2024, workers assembled the second-generation R1 car at the electric vehicle manufacturer Rivian’s manufacturing plant in Normal, Illinois, USA.
Joel Angel Juarez | Reuters
Rivian Cars Second-quarter revenue and profit topped Wall Street expectations as the electric-car maker continued to cut costs in its business.
Here’s how the company performed, compared with estimates from analysts surveyed by London Stock Exchange Group (LSEG):
- Earnings per share: Adjusted loss $1.13, expected loss $1.21
- Car income: $1.16 billion vs. $1.14 billion expected
The company’s second-quarter adjusted net loss widened to $1.46 billion, or $1.46 per share, from $1.2 billion, or $1.27 per share, in the same period last year.
Its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were flat compared with the same period last year, with a loss of $860 million.
Rivian on Tuesday reiterated its 2024 total production guidance of 57,000 units, an adjusted EBITDA loss of $2.7 billion and a capital expenditure loss of $1.2 billion.
Rivian produced about 23,600 vehicles in the first six months of this year, including just 9,162 in the second quarter as the company shut down factories to reorganize and reduce costs.
The second-quarter results come more than a month after Rivian held an investor day that focused on cutting costs, improving efficiency, and in-house technology and software. A few days ago, Rivian announced that Volkswagen plans to invest up to $5 billion in the electric vehicle startup, with an initial investment of $1 billion.
Rivian shares are down 37% this year as demand for electric vehicles falls short of expectations and Rivian burns massive amounts of cash. The stock closed at $14.80 on Tuesday, up 1.3%.
Rivian still loses thousands of dollars on every vehicle it makes, but it has been working to lower costs. Rivian CEO RJ Scaringe said in June that product and manufacturing efficiencies were expected to result in a 20% reduction in material costs for its existing vehicles earlier this year, followed by a targeted 45% reduction expected for the upcoming “R2” vehicle in 2026 It was put into production at the beginning of the year.
Rivian spent $537 million in the first half of this year, including $283 million in the second quarter.
Rivian’s total liquidity at the end of the second quarter was $9.18 billion, including $7.87 billion in cash, cash equivalents and short-term investments.
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