Workers assemble second-generation R1 vehicles at electric carmaker Rivian’s manufacturing plant in Normal, Illinois, U.S., June 21, 2024.
Joel Ángel Juárez | Reuters
Rivian Automobile beat Wall Street expectations for second-quarter revenue and net income as the electric vehicle maker continued to cut costs across its business.
Here are the company’s results, compared to the estimates of analysts surveyed by LSEG:
- Earnings per share: Adjusted loss of $1.13 versus expected loss of $1.21
- Automotive turnover: $1.16 billion versus $1.14 billion expected
The company’s adjusted net loss widened in the second quarter to $1.46 billion, or a loss of $1.46 per share, from $1.2 billion a year earlier, or a loss of $1.27 per share.
Its adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, were about the same as the same period a year ago, with a loss of $860 million.
Rivian on Tuesday reaffirmed its 2024 guidance of 57,000 total production units, a $2.7 billion loss in adjusted EBITDA and $1.2 billion in capital expenditures.
In the first six months of the year, Rivian produced about 23,600 vehicles, including only 9,162 in the second quarter due to downtime at the company’s plant to retool and cut costs.
The second-quarter results come more than a month after Rivian held an investor day focused on cost-cutting efforts, efficiency gains and internal technology and software. The event came days after Rivian announced plans to have Volkswagen invest up to $5 billion in the electric-vehicle startup, starting with an initial investment of $1 billion.
Rivian shares have fallen 37% this year on slower-than-expected demand for electric vehicles and Rivian’s heavy cash burn. The stock closed Tuesday at $14.80, up 1.3%.
Rivian, which still loses thousands of dollars on every vehicle it makes, has focused on cutting costs. Rivian CEO RJ Scaringe said in June that efficiencies it made earlier this year in product and manufacturing should result in a 20% reduction in material costs in its current vehicles, followed by targeted 45% reductions in its upcoming “R2” vehicles, which are expected to begin production in early 2026.
Rivian’s expenses in the first half of the year were $537 million, including $283 million in the second quarter.
Rivian ended the second quarter with $9.18 billion in total liquidity, including $7.87 billion in cash, cash equivalents and short-term investments.
