Rivian recently released its second-quarter earnings report for 2024, shortly after receiving the initial installment of a substantial $5 billion investment from Volkswagen.
The company’s Q2 financial results revealed a total revenue of $1.16 billion, an adjusted negative gross profit of -$451 million, operating expenses of $924 million, and a net loss of $1.46 billion.
Cash Position and EPS
At the end of the second quarter, Rivian held $5.76 billion in cash, encompassing the initial $1 billion convertible note from Volkswagen. Additionally, the earnings per share (EPS) were reported as negative $1.13.
CEO’s Statement
CEO RJ Scaringe expressed his satisfaction with the company’s progress, stating, “The second quarter has been a defining one for Rivian. We have demonstrated strong execution during the quarter with the plant retooling upgrade and launch of second-generation R1 vehicles. The changes we made to the R1 platform have allowed us to reduce material and manufacturing costs while simultaneously improving performance and capabilities. As a testament to our industry-leading technology stack, we also recently announced our proposed JV with Volkswagen Group.”
Production and Delivery Numbers
Last month, Rivian disclosed that it had delivered 13,790 vehicles in Q2, while producing 9,612 units at its Illinois factory. In Q1, the company also reported net losses of $1.45 billion and total revenue of roughly $1.2 billion.
Loss Per Vehicle Sold
Based on these figures, Rivian’s loss per EV sold amounted to approximately $32,705, a slight improvement from the $38,784 loss per EV sold in Q1 and $43,372 in Q2 of the previous year.
Volkswagen Investment and Joint Venture
The remaining $4 billion of Volkswagen’s investment is contingent upon the fulfillment of certain agreements and milestones, along with obtaining necessary regulatory approvals.
The companies have also unveiled plans for a joint venture, collaborating on technology and an EV platform.
Launch of Updated R1 Lineup
In Q2, Rivian introduced its updated R1 lineup, which boasts an anticipated 20 percent reduction in material costs compared to the first-generation models.
This strategic move aims to enhance the company’s financial performance and competitiveness in the electric vehicle market.