Rivian (RIVN) will provide investors with a crucial first-quarter update on its financial results as the pure-play electric adventure vehicle maker attempts to reverse a trend of profit losses this year.
In the first quarter, Rivian revealed its next R2 intermediate electric vehicle And strong sales in the first quarterbut also announced job cuts and a pause in development from its Georgia factory. The company also received financial assistance from the State of Illinois: a $827 million incentive program to expand its facilities in the town of Normal.
Conserving cash while continuing to develop its new vehicles (and retool its existing normal factory) is a major concern for investors as 2024 progresses.
For the quarter, Rivian is expected to report revenue of $1.175 billion, a massive 78% increase from last year. The increase in revenue will not yet translate into profits, with the company expected to report an adjusted loss of $1.15 per share, with an adjusted net income loss of $1.129 billion. Operating profit is expected to be slightly worse, with a loss of $1.299 billion, as well as negative EBITDA of $856.6 million.
Last month, however, the company reported first-quarter production of 13,980 R1Ts and R1S and deliveries of 13,588, beating expectations by around 12,400 units. The company also reaffirmed its production forecast of 57,000 vehicles in 2024.
Investors will also be looking for updates on Rivian’s profitability metrics for the full year. Rivian previously said it expects an adjusted EBITDA loss of $2.70 billion for 2024, with capital expenditures reaching $1.75 billion.
Part of the reduction in these costs took the form of a 10% reduction in salaried staff, with the company citing economic uncertainty. During its fourth-quarter earnings report, Rivian reiterated its forecast of achieving “modest gross profit” by the end of 2024. Chief Financial Officer Claire McDonough noted that the company was “very close” to achieve a positive contribution margin by the end of 2023.
As for its cash cushion, Rivian said it had $7.86 billion in cash and cash equivalents at the end of the fourth quarter, down from the $9.1 billion it had he had at the end of the third trimester.
R2 and future vehicles
In March, at an event in Laguna Beach, California, Rivian revealed its smaller, less expensive R2 electric SUV, which is expected to arrive in 2026. In a surprise announcement, the company also revealed smaller R3 crossovers , which gave the stock a boost. , even though shares are still down 55% year to date.
Rivian also said it would produce the R2 at its existing U.S. factory instead of its upcoming plant in Georgia, saving the company more than $2 billion. Rivian said development of its Georgia plant is on hold for now, although Georgia Gov. Brian Kemp. Rivian CEO RJ Scaringe reaffirmed the company did not abandon the…
