Rivian (RIVN) reported mixed quarterly results for the first quarter, but will realize further cost savings by moving its next R2 production to its Normal, Ill., plant and reducing its capital spending forecast. The electric vehicle maker also reaffirmed its full-year loss guidance and still sees a “pathway” to a “modest gross profit” in the fourth quarter of this year.
For the quarter, Rivian reported revenue of $1.204 billion versus an expected $1.175 billion, an 80% increase from last year. However, Rivian reported a loss per share of $1.45 versus an estimated $1.27, with an operating loss of $1.484 billion versus an expected $1.299 billion.
Rivian reaffirmed its adjusted EBITDA loss forecast of $2.70 billion for 2024, but now sees its capex improving to $1.2 billion from $1.75 billion previously due to the moving the start of R2 production to its factory in Normal, Illinois, with further savings realized. in 2025 and 2026.
Rivian stock was trading higher hours before its first-quarter earnings release, but fell about 4% after the results were released.
“We achieved several milestones this quarter, including producing our 100,000th vehicle in normal mode, successfully completing the retooling upgrade and unveiling our new mid-tier platform, which underpins the R2, R3 and R3X,” CEO RJ Scaringe said in a statement.
The company also said that following its upgrade and other improvements, Rivian remains “confident in its path to achieving modest gross profit in the fourth quarter of this year.”
By moving R2 production to its existing U.S. factory instead of its upcoming factory in Georgia, Rivian said Tuesday the company would save more than $2.25 billion. The company now expects its normal factory, after the R2 launch and factory changes, to reach 215,000 units of total annual capacity for all vehicles, which includes up to 155,000 units of the R2.
As for its cash cushion, Rivian said it had $5.98 billion at the end of the first quarter, up from $7.86 billion at the end of the fourth quarter.
Last month, 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.
Part of the reduction in these costs took the form of a 10% reduction in salaried staff, with the company citing economic uncertainty. Although Rivian reaffirmed its forecast of achieving “modest gross profit” by the end of 2024, Rivian did not reiterate its earlier statements that it was “very close” to achieving a positive contribution margin at the end of 2023.
