Rivian’s Q2 Loss Narrows; Production Outlook Brightens for 2023
Electric automaker Rivian has reported a narrower-than-expected loss for its second quarter of 2023.
In a positive turn, the company has revised its production expectations for 2023, now aiming to manufacture about 52,000 vehicles. This ambitious target is over twice the number of vehicles it produced in 2022 and an upgrade from its previous forecast of 50,000 vehicles.
Notably, Rivian recorded a 59% boost in its Q2 deliveries, distributing 12,640 vehicles compared to its Q1 figures. This was a significant increase from the 4,467 EVs it delivered in the same quarter of the previous year. Vehicle production also saw an uptick, with 13,992 vehicles produced in Q2, marking an improvement from both the first quarter of 2023 and the second quarter of 2022.
Breaking down Rivian’s financials, the reported adjusted loss per share stood at $1.08, a favorable outcome against the anticipated $1.41. Revenue generation for the company also surpassed expectations, registering at $1.12 billion against the predicted $1 billion.
The EV maker’s net loss for the quarter totaled $1.2 billion, a positive shift from the net loss of $1.71 billion reported in the same quarter a year prior.
Rivian’s CEO, RJ Scaringe, in a statement to CNBC, expressed his satisfaction over the Q2 results.
“Our second quarter results reflect our continued focus on cost efficiency as we accelerate the drive towards profitability,” said Scaringe. “We have achieved meaningful reductions in both R1 and EDV vehicle unit cost across the key components, including material costs, overhead and logistics. It was a strong quarter, and we remain focused on ramping production, driving cost efficiencies, developing future technologies, and enhancing the customer experience.”
One of the impressive highlights from the report was Rivian’s gross loss reduction. The EV manufacturer reported a gross loss of $412 million for the quarter, a substantial drop from the $704 million recorded in the previous year’s corresponding period.
Rivian’s financial stability is further emphasized by its substantial cash reserve. As of June 30, the EV maker reported having $10.2 billion in hand. Their liquidity position is further strengthened with an additional credit line of approximately $1.1 billion. However, in comparison to March 31, there was a decrease from $11.78 billion.
In a bid to optimize its spending and fortify its financial position, Rivian implemented several measures earlier in the year. These included a 6% staff reduction in February and a significant sale of convertible notes amounting to $1.3 billion in March.
Interestingly, there has been a postponement in the launch of Rivian’s R2 vehicle platform, which is now expected to hit the market in 2026, delayed from its initial 2025 release.
For the first half of 2023, the company has already manufactured roughly 23,400 vehicles. Currently, Rivian is engrossed in producing its R1T pickup, R1S SUV, and a series of electric delivery vans tailor-made for Amazon, all at its plant located in Normal, Illinois.