Rivian’s bottomline dips in 2Q while revenues pick up

Rivian’s 2Q earnings are a mixed tale: Abdul Latif Jameel-backed US EV startup reported a net loss of USD 1.5 bn in 2Q 2024 while revenues increased 3.3% y-o-y to USD 1.2 bn, according to a financial statement.

On a six month basis: Rivian’s net loss deepened 14.1% y-o-y during 2H 2024, reaching USD 2.9 bn. Revenues rose 32.5% to USD 2.4 bn during the same period, up from USD 1.8 bn in 1H 2023.

Behind the numbers: The company produced over 9.6k vehicles and delivered 13.8k during the quarter. Rivian loses USD thousands on every vehicle, standing at around 39% of vehicle price, according to Reuters. The company expected production not to rise this year after one of their factories shut down in April to cut costs, Reuters added. The company said earlier this year that it will lay off 10% of its workforce and expects to shut down production for several weeks in 2Q 2024 to upgrade its production line, improve efficiency, and cut costs.

Rivian will have to dial back its plans: Rivian also announced a production pause of over a month next year to prepare for a smaller vehicle launch in 2026, Reuters added.

REMEMBER- The firm had a tough couple of years: The EV maker has been grappling with financial challenges exacerbated by higher interest rates and softening US demand for electric vehicles, sending Rivian’s shares down about 90% since it went public in 2021. Rivian posted a loss of USD 1.4 bn in 1Q 2024 as it lost around USD 38k on each of its USD 70k vehicles, and was among the EV makers to have missed their annual production targets or experienced record low slumps in stock last year.

Rivian is partnering with other EV makers to cushion the blow: Rivian signed an agreement with German automaker Volkswagen (VW) in June to establish a JV to co-develop EVs before the end of the decade. Under the agreement, VW will invest up to USD 5 bn — starting with an initial USD 1 bn in the company — and receive access to Rivian’s EV software.