Workers assemble second-generation R1 vehicles at electric carmaker Rivian's manufacturing facility in Normal, Illinois, U.S., June 21, 2024.
Joel Angel Juarez | Reuters
Rivian Automotive beat Wall Street expectations for second-quarter revenue and earnings as the electric vehicle maker continues to cut costs from its business.
Here's how the company fared, compared to estimates from analysts surveyed by LSEG:
- Earnings per share: Adjusted loss of $1.13 vs. expected loss of $1.21
- Automotive sector revenues: $1.16 billion versus $1.14 billion forecast
The company's adjusted net loss widened during the second quarter to $1.46 billion, or a loss of $1.46 per share, compared with $1.20 billion a year earlier, or a loss of $1.27 per share.
Its adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, were roughly flat with the same period a year earlier, with a loss of $860 million.
Rivian on Tuesday reaffirmed its 2024 guidance of 57,000 total production units, a loss of $2.7 billion in adjusted EBITDA and $1.2 billion in capital expenditures.
During the first six months of the year, Rivian produced about 23,600 vehicles, including just 9,162 during 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 that focused on cost-cutting efforts, efficiency gains and internal technologies and software. The event came days after Rivian announced plans for Volkswagen to invest up to $5 billion in the electric vehicle startup, starting with an initial investment of $1 billion.
Rivian shares are down 37% this year amid slower-than-expected demand for electric vehicles as well as a significant cash burn by Rivian. Shares closed Tuesday at $14.80, up 1.3%.
Rivian, which continues to lose thousands of dollars on every vehicle it makes, has been focused on cutting costs. Rivian CEO RJ Scaringe said in June that efficiencies from earlier this year in products and manufacturing are expected to lead to 20% reductions in materials costs in its current vehicles, followed by expected 45% reductions in its upcoming “R2” vehicles, which are expected to begin production in early 2026.
Rivian's expenses for 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.
