Laguna Beach, California – Electric vehicle manufacturer Rivian reported a mixed first-quarter financial performance, with revenue slightly exceeding expectations but a higher-than-expected loss per share. Despite the quarterly results, Rivian anticipates cost savings from relocating R2 production to its plant in Normal, Illinois, and reducing its capital expenditure projections. The company also restated its full-year loss forecast and remains optimistic about achieving a “modest gross profit” by the fourth quarter of this year.
A highlight of the quarter was Rivian’s revenue of $1.204 billion, representing an 80% increase from the previous year. However, the company reported a loss per share of $1.45, higher than the estimated $1.27, and an operating loss of $1.484 billion, exceeding expectations of $1.299 billion in losses.
Looking ahead, Rivian maintains its adjusted EBITDA loss forecast of $2.70 billion for 2024. By transitioning R2 production to its Normal facility, the company expects a reduction in capital expenditure to $1.2 billion compared to the previously projected $1.75 billion, with additional savings anticipated in 2025 and 2026.
Following the release of its first-quarter results, Rivian’s stock initially rose in after-hours trading but later declined by around 4%. CEO RJ Scaringe emphasized the company’s achievements during the quarter, including reaching the milestone of producing its 100,000th vehicle in Normal and unveiling a new midsize platform supporting the R2, R3, and R3X models.
Moreover, Rivian will save over $2.25 billion by moving R2 production to its existing US factory instead of the planned Georgia facility. The company expects the Normal plant to reach a total annual capacity of 215,000 units post-R2 launch, including up to 155,000 R2 vehicles.
In terms of cash reserves, Rivian reported $5.98 billion at the end of the first quarter, down from $7.86 billion in the previous quarter. The company also confirmed its earlier production figures for the R1T and R1S models and its guidance of delivering 57,000 vehicles in 2024.
As part of cost-cutting measures, Rivian implemented a 10% reduction in salaried staff and remains focused on achieving a “modest gross profit” by the end of 2024. While the company did not reiterate previous statements about nearing a positive contribution margin by the end of 2023, it remains committed to its financial targets.
Recent developments include the suspension of operations at Rivian’s Georgia factory, with plans to resume activities once the R2 is ready for mass production. Additionally, the company intends to introduce the R2 model in the European market and explore new opportunities for expansion.
Overall, Rivian’s strategic shifts and financial adjustments reflect its efforts to streamline operations, improve cost efficiencies, and position itself for sustainable growth in the competitive electric vehicle market.