In April 2022, Rivian Automotive commenced production of their electric Rivian R1T pickup trucks at their plant in Normal, Illinois.
According to their second-quarter report, Rivian’s loss was smaller than expected, and the company has raised its production guidance for the year. They now plan to build approximately 52,000 vehicles in 2023, more than double the number produced in 2022, and higher than their previous estimate of 50,000 vehicles.
During the second quarter, Rivian delivered 12,640 vehicles, a 59% increase from the previous quarter and a significant improvement from the 4,467 EVs delivered in the same quarter of 2022. The company manufactured 13,992 vehicles during the quarter, compared to 9,395 in the first quarter of 2023 and 4,401 in the second quarter of 2022.
Here are the key figures from Rivian’s report, along with the consensus analyst estimates from Refinitiv:
- Adjusted loss per share: $1.08 vs. an expected $1.41.
- Revenue: $1.12 billion vs. an expected $1 billion.
Rivian’s net loss for the quarter was $1.2 billion, or $1.27 per share, an improvement from the net loss of $1.71 billion, or $1.89 per share, reported a year ago. On an adjusted basis, Rivian’s loss was $1.02 billion, or $1.08 per share.
Revenue in the second quarter increased to $1.12 billion from $364 million during the same period in 2022. The company’s revenue for the quarter included $34 million from the sale of regulatory credits.
In a statement to CNBC, CEO RJ Scaringe said, “Our second quarter results reflect our continued focus on cost efficiency as we accelerate the drive towards profitability. We have achieved significant reductions in both R1 and EDV vehicle unit costs across various key components, including material costs, overhead, and logistics. It was a strong quarter, and we remain committed to scaling production, driving cost efficiencies, developing future technologies, and enhancing the customer experience.”
Rivian’s gross loss, or negative gross profit, for the quarter was $412 million, a decrease from $704 million in the previous year. The company also saw an improvement of approximately $35,000 per vehicle compared to the first quarter of 2023. This improvement was driven by increased production, economies of scale, and efforts to negotiate material cost reductions through commercial agreements and engineering design changes.
Rivian reaffirmed its expectation to achieve a positive gross profit in 2024.
As of June 30, Rivian had $10.2 billion in cash, a decrease from $11.78 billion at the end of March. Additionally, the company had approximately $1.1 billion in available credit lines, resulting in a total liquidity of $11.3 billion. Capital expenditures for the second quarter totaled $255 million, compared to $359 million in the same period last year.
For the full year, Rivian now anticipates approximately $1.7 billion in capital expenditures, lower than the previous guidance of $2 billion.
In an effort to control spending and strengthen their financial position, Rivian implemented several measures earlier this year, including a 6% reduction in staff in February and a $1.3 billion sale of convertible notes in March. The launch of their upcoming R2 vehicle platform was also postponed from 2025 to 2026.
In the first half of 2023, Rivian produced approximately 23,400 vehicles. Currently, the company is manufacturing the R1T pickup, the R1S SUV, and electric delivery vans for Amazon at their facility in Normal, Illinois.
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