Workers assemble second-generation R1 vehicles at electric automobile maker Rivian’s manufacturing facility in Normal, Illinois, USA, June 21, 2024.
Joel Angel Juarez | Reuters
Rivian Automobiles beat Wall Street’s second-quarter revenue and profit expectations as the electrical vehicle maker continues to chop costs from its business.
Here’s how the corporate performed in comparison with the estimates of analysts surveyed by LSEG:
- Earnings per share: Adjusted lack of $1.13 versus expected lack of $1.21
- Automotive sales: $1.16 billion in comparison with expected $1.14 billion
The company’s adjusted net loss increased to $1.46 billion, or $1.46 per share, within the second quarter, in comparison with $1.2 billion, or $1.27 per share, a yr earlier.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) remained roughly at the identical level as the identical period last yr, with a lack of $860 million.
Rivian on Tuesday reiterated its 2024 forecast, which calls for total production of 57,000 units, a lack of $2.7 billion in adjusted EBITDA and $1.2 billion in capital expenditures.
In the primary six months of the yr, Rivian produced about 23,600 vehicles, including only 9,162 within the second quarter attributable to downtime at the corporate’s factory for retooling and cost-cutting.
The second-quarter results come greater than a month after Rivian held an investor day to spotlight cost-cutting measures, efficiency improvements and in-house technology and software. The event got here days after Rivian announced plans for Volkswagen to speculate as much as $5 billion within the EV startup, starting with an initial investment of $1 billion.
Rivian shares have fallen 37% this yr as demand for electric vehicles has been slower than expected and Rivian has burned through significant amounts of money. The stock closed Tuesday at $14.80, up 1.3%.
Rivian, which still loses 1000’s of dollars on every vehicle it makes, has focused on cutting costs. Rivian CEO RJ Scaringe said in June that product and manufacturing efficiency improvements are expected to steer to a 20% material cost reduction on current vehicles early this yr, followed by a targeted 45% reduction on the upcoming “R2” vehicles, production of which is anticipated to start in early 2026.
Rivian’s expenses totaled $537 million in the primary half of the yr, including $283 million within the second quarter.
Rivian ended the second quarter with total liquidity of $9.18 billion, including $7.87 billion in money, money equivalents and short-term investments.
