Rivian Q2 Losses Deepen to $1.46B, but Cost-Cutting Efforts Show Promise

Electric vehicle (EV) manufacturer Rivian Automotive on Tuesday reported an increased net loss of $1.46 billion for Q2 2024, up from $1.2 billion in the same period last year. 

Despite the increased losses, the company managed to exceed Wall Street’s expectations for both revenue and earnings, signaling progress in its efforts to streamline operations and reduce costs.

Rivian posted revenue of $1.16 billion, surpassing analysts’ estimates of $1.14 billion. This revenue boost, according to Rivian, was primarily driven by the delivery of 13,790 vehicles in Q2, a slight increase from the previous quarter. The company’s adjusted earnings per share showed a loss of $1.13, outperforming the expected loss of $1.21 per share.

In a press release, Rivian CEO RJ Scaringe emphasized the company’s commitment to cost efficiency and production ramp-up, “We have demonstrated strong execution during the quarter with the plant retooling upgrade and launch of second-generation R1 vehicles,” said Scaringe.

The company’s cost-saving measures include manufacturing upgrades and supplier contract renegotiations. Rivian claims these efforts have yielded results, with cost per vehicle dropping to a loss of $32,705 in Q2, against $38,784 in Q1.

However, the EV maker will have more challenges to deal with as its shares have declined by 37% this year, influenced not only by lower-than-expected EV demand but a recent general tumble in the stock market.

What’s Next for Rivian?

Rivian plans to intensify production in the latter half of the year, capitalizing on recent factory upgrades. The company will continue its cost-cutting initiatives, including the introduction of new in-house drive units expected to reduce costs by 47% compared to the previous generation.

The $5 billion Volkswagen partnership announced in June is also set to play a big role in Rivian’s future and could accelerate the company’s second model (R2 SUV), which is due for shipment in 2026.