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Rivian Automotive, the electric vehicle manufacturer, has released its Q2 report, revealing a loss that was less than anticipated and an updated production forecast for the entire year.
Key highlights from the report include:
- Production Forecast: Rivian has adjusted its production outlook for 2023, now aiming to manufacture approximately 52,000 vehicles. This is a significant increase from the 2022 figures and surpasses the earlier projection of 50,000 vehicles.
- Vehicle Deliveries: The company delivered 12,640 vehicles in Q2, marking a 59% increase from Q1 and a substantial rise from the 4,467 vehicles delivered in Q2 of 2022.
- Financial Figures:
- Adjusted loss per share stood at $1.08, which is better than the expected $1.41.
- Revenue reached $1.12 billion, surpassing the anticipated $1 billion.
- The net loss for the quarter was $1.2 billion, or $1.27 per share, an improvement from the previous year’s loss of $1.71 billion, or $1.89 per share.
- Revenue for Q2 surged to $1.12 billion from the previous year’s $364 million, with $34 million attributed to the sale of regulatory credits.
RJ Scaringe, Rivian’s CEO, commented on the results, emphasizing the company’s dedication to cost efficiency and the journey towards profitability. He highlighted significant cost reductions across primary components and expressed satisfaction with the quarter’s performance.
The company’s gross loss for the quarter was $412 million, a decrease from the previous year’s $704 million. This improvement is attributed to increased production, economies of scale, and ongoing efforts to reduce material costs.
Rivian remains optimistic about achieving a positive gross profit in 2024. As of June 30, the company reported $10.2 billion in cash, a decrease from the $11.78 billion reported as of March 31. The company’s total liquidity stood at $11.3 billion, with capital expenditures for Q2 at $255 million.
For 2023, Rivian has revised its capital expenditure forecast to about $1.7 billion, down from the previously estimated $2 billion.
Earlier this year, Rivian implemented measures to reduce expenses and strengthen its financial position. This included a 6% staff cut in February and a $1.3 billion sale of convertible notes in March. The launch of the R2 vehicle platform has been postponed to 2026.
In the first half of 2023, Rivian produced approximately 23,400 vehicles. The company continues to manufacture the R1T pickup, R1S SUV, and a series of electric delivery vans for Amazon at its Illinois-based factory.
The report underscores Rivian’s growth trajectory in the EV market and its commitment to refining its operations and financial health.
