Rivian misplaced $1.45 billion within the first quarter, exhibiting that its latest company-wide cost-cutting measures have a methods to go earlier than it may well method profitability.
The EV-maker introduced in $1.2 billion in income within the interval, coming in slightly below its document haul from the prior quarter, based on its first-quarter earnings report that was launched Tuesday after markets closed. That’s barely greater than the $1.16 billion anticipated by Yahoo Finance analysts. Rivian’s income grew 82% from the $661 million it generated within the first quarter in 2023.
Nonetheless, that wasn’t sufficient to assuage shareholders. Rivian’s shares fell greater than 4% in after-hours buying and selling.
Some cost-cutting aid is on the horizon.
Rivian just lately completed up a weeks-long shutdown on the Illinois manufacturing unit the place it retooled and adjusted components of its manufacturing course of. These upgrades ought to decrease the price of manufacturing and pace it up, based on the corporate. Rivian mentioned it built-in “practically 600 new or modified robots” that can make the prevailing manufacturing traces “run extra effectively.”
The corporate’s resolution earlier this 12 months to shift manufacturing of its next-generation SUV, the R2, away from a deliberate manufacturing unit in Georgia to its current facility in Illinois, can be reaping rewards. Rivian has beforehand mentioned it will save $2.25 billion by making the transfer, which can deliver R2 manufacturing on-line earlier.
In its Q1 earnings report, Rivian mentioned it now expects to “be capable of considerably scale back the capital expenditures required to launch R2.” The corporate has lowered its capital expenditures steerage to $1.2 billion, a discount of $550 million. These financial savings don’t embrace the latest $827 million incentives package deal Rivian obtained from the state of Illinois.
Rivian additionally mentioned Tuesday that it plans to open up the charging community it’s constructing ot different EVs. The corporate mentioned the so-called Rivian Journey Community can develop into a “revenue middle over time.” Opening the community additionally makes Rivian eligible for federal funding from the Bipartisan Infrastructure Legislation.
The Q1 income determine, whereas exhibiting development year-over-year, mirrored a considerably tepid gross sales quarter. The corporate reported in April it produced 13,980 automobiles and delivered 13,588 of them within the first quarter of 2024. Each of these figures are down from the fourth quarter of 2023, the place it constructed 17,541 and shipped 13,972.
Rivian reaffirmed on Tuesday that it plans to make across the identical variety of EVs because it did in 2023.
Rivian had an eventful first quarter that included a splashy reveal of its future R2 and R3 EV lineup in addition to extra belt tightening and layoffs. In February, Rivian laid off 10% of its workforce because the EV startup tried to rein in prices. This was the third spherical of layoffs for the EV firm since July 2022, when Rivian reduce 6% of its workforce. The corporate reduce one other 6% of jobs in February 2023.
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