Rivian Q2 2024 Earnings Reveal Continued Losses But Strong Cost-Cutting Progress

Rivian has released its Q2 earnings for 2024, which shows continued losses but demonstrates progress in its aggressive cost-cutting measures for its electric vehicles (EVs). CEO RJ Scaringe called the quarter “defining” as the company aims for its first gross profit by year-end.

For Rivian’s Q2 2024 earnings result, Rivian reported revenue of $1.158 billion, meeting Wall Street expectations. The company posted a net loss of $1.46 billion, slightly improved from the $1.48 billion loss in Q1. Earnings per share came in at a loss of $1.13, better than the projected loss of $1.15.

Despite the losses, Rivian has made major strides in cutting down costs. The company has eliminated over 100 steps from the battery-making process, 50 components from the body shop, and 500 parts from the design. New in-house drive units have cut costs by 47% compared to the original Quad motor.

Production and delivery numbers saw a slight increase, with 13,790 units delivered in Q2. However, due to a planned Illinois plant shutdown in April, production dipped to 9,612 units. Rivian lost $32,705 on every vehicle built in Q2, an improvement from Q1 but still higher than late 2023 figures.

The company ended Q2 with $7.87 billion in cash and equivalents, bolstered by a recent $1 billion investment from Volkswagen as part of a larger partnership. This deal could see Volkswagen invest up to $5 billion in total, subject to certain milestones.

Read More: Volkswagen and Rivian Forge $5 Billion Strategic Partnership For Next-Gen EV Development

As Rivian reaffirmed its target to produce 57,000 units in 2024 and achieve a positive gross profit in Q4, the company is banking on its newly launched second-generation R1 models, which are projected to bring a 20% material cost reduction.

Rivian’s future strategy includes the launch of its lower-cost R2 model in early 2026, starting at $45,000. The company reports “well over 100,000” pre-orders for the R2, which is expected to significantly expand Rivian’s market reach.

Despite challenges, Rivian remains optimistic about its trajectory. The company’s focus on cost reduction, technological advancements, and strategic partnerships positions it to potentially achieve profitability in the near future, although major hurdles remain in the competitive EV market.

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