The company's Q2 results led to a 6% drop in its stock price during after-hours trading. Rivian produced 9,162 vehicles in Q2, contributing to a total of 23,600 for the first half of 2024. The company slowed down production due to factory downtime for retooling and cost reduction efforts.
Rivian's CEO, RJ Scaringe, has set ambitious cost-cutting targets. The company aims to reduce material costs by 20% for current vehicles and by 45% for the upcoming R2 series.
Despite these efforts, Rivian's financial results remain concerning. The company reported a Q2 loss of $1.46 billion, a 21% increase from the $1.2 billion loss in Q2 2023. Revenue grew by 3.3% to $1.16 billion, driven by a 9% increase in sales.
Rivian's cash position has significantly decreased from $7.9 billion at the end of 2023 to $5.8 billion at the end of Q2 2024. The loss per vehicle slightly increased from $32,595 in Q2 2023 to $32,705 in Q2 2024.
Looking forward, Rivian maintains its 2024 production target of 57,000 vehicles. However, the company expects a dip in deliveries in Q3 due to inventory rebuild.
In a move to secure its long-term future, Rivian has entered into a partnership with VW Group. This joint venture will focus on electrical architecture and software technology. Rivian has already invested $1 billion in this partnership and plans to invest an additional $4 billion.
While Rivian continues to face challenges, the company remains focused on growth and cost reduction. The market's reaction to these results shows that investors are concerned about the company's path to profitability in the competitive electric vehicle industry.
Source: Automotive News