Rivian’s Q1 Results Show Mixed Performance, Capex Forecast Reduced and Q4 ‘Gross Profit’ Expected

Rivian, the electric vehicle maker, recently reported mixed quarterly results for the first quarter, but the company is optimistic about cost savings and future profitability. Despite posting a loss per share of $1.48, which was higher than the estimated $1.27, Rivian saw a significant increase in revenue, reaching $1.20 billion, an 80% jump from the previous year.

The company reaffirmed its full-year loss forecast but remains confident in achieving a “modest gross profit” in the fourth quarter of this year. Rivian also announced plans to shift its upcoming R2 production to its Normal, Ill., plant, resulting in cost savings of over $2.25 billion. This move, along with a reduction in capital expenditure forecast, is expected to improve the company’s financial outlook.

CEO RJ Scaringe highlighted several milestones achieved in the quarter, including producing the 100,000th vehicle in Normal and unveiling a new midsize platform. The company’s cash cushion at the end of Q1 was reported at $5.98 billion, down from $7.86 billion at the end of Q4.

Despite facing economic uncertainty and implementing a 10% salaried staff reduction, Rivian remains focused on reaching profitability by the end of 2024. The company also reaffirmed its production guidance of 57,000 vehicles in 2024 and plans to launch the R2 in Europe, tapping into a new market for growth.

With the shift in production and cost-saving measures in place, Rivian is poised for future success and remains committed to its long-term goals of sustainable growth and profitability.