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Rivian Reports Mixed Q1 Results, But Cuts Investment Forecast, Sees ‘Gross Profit’ in Q4
Rivian (RIVN) reported mixed quarterly results for the first quarter, but will see further cost savings from moving its upcoming R2 production to its Normal, Illinois plant and cutting its capital expenditure forecast. The electric vehicle maker also reaffirmed its full-year loss forecast and still sees a “path” to a “modest gross profit” in the fourth quarter of this year.
For the quarter, Rivian reported revenue of $1.204 billion vs. $1.175 billion expected, which represents an 80% jump from the previous year. However, Rivian reported a loss per share of $1.45 versus an estimated $1.27, with an operating loss of $1.484 billion compared to the expected loss of $1.299 billion.
Rivian reaffirmed its adjusted EBITDA loss forecast of $2.70 billion for 2024, but now sees its capital expenditures improving to $1.2 billion from $1.75 billion seen previously due to the change in start-up of R2 production to its factory in Normal, Illinois, with additional savings noted. in 2025 and 2026.
Rivian shares were trading higher just hours before the release of first-quarter results, but fell about 4% after the results were released.
“We achieved several milestones this quarter, including producing our 100,000th vehicle in Normal, successfully navigating the retool upgrade and unveiling our new midsize platform, which underpins the R2, R3 and R3X,” said CEO RJ Scaringe in an announcement.
The company also said that as a result of its retooling upgrade and other improvements, Rivian remains “confident in its path to achieving a modest gross profit in the fourth quarter of this year.”
By moving R2 production to its existing U.S. factory rather than its upcoming plant in Georgia, Rivian said Tuesday the company will save more than $2.25 billion. The company now expects its Normal factory, following the launch of the R2 and changes to the factory, to reach 215,000 units of total annual capacity across all vehicles, which includes up to 155,000 units of the R2.
Rivian Founder and CEO RJ Scaringe speaks on stage during the Rivian Reveals All-Electric R2 Midsize SUV event at the Rivian South Coast Theater on March 7, 2024, in Laguna Beach, California. Getty Images)
In terms of cash reserves, Rivian said it had $5.98 billion at the end of the first quarter, compared to the $7.86 billion it had at the end of the fourth quarter.
Last month, the company reported first-quarter R1T and R1S production of 13,980 and deliveries of 13,588, exceeding expectations of about 12,400 units. The company also reaffirmed its production guidance of 57,000 vehicles in 2024.
Part of the reduction in these costs came in the form of a 10% reduction in salaried staff, with the company citing economic uncertainty. Although Rivian reaffirmed its forecast of achieving a “modest gross profit” by the end of 2024, Rivian did not reiterate previous statements that it was “very close” to achieving a positive contribution margin by the end of 2023.
The story continues
The Rivian R3 and R3X SUVs are displayed during the Rivian Reveals All-Electric R2 Midsize SUV event at the Rivian South Coast Theater on March 7, 2024, in Laguna Beach, California. Images)
Earlier this year, Rivian said development of its Georgia factory was currently on hold, although Georgia Governor Brian Kemp said said Scaringe reaffirmed the company was not abandoning the project.
Scaringe said that once R2 was ready for a larger rollout, the next facility in Georgia would handle the rollout. The company also said it would launch its R2 in Europe, which would be a huge market for the company as it does not currently sell its larger R1 vehicles on the continent.
Pras Subramanian is a reporter for Yahoo Finance. You can follow it Twitter and so on Instagram.
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