Rivian reported late Tuesday a worse-than-expected loss in the second quarter while revenue came in higher than analyst projections. Meanwhile, the EV startup said its joint venture with Volkswagen is expected to close by the fourth quarter. RIVN shares tumbled Wednesday.
Rivian announced a loss of $1.46 per share in the second quarter — compared to a $1.27 per share loss in Q2 2023 — while revenue totaled $1.158 billion, up 3% vs. a year ago. Total revenue from regulatory credits came in at $17 million for the quarter, according to the after-hours report. Ahead of earnings, analysts expected a Q2 loss of $1.24 per share and revenue totaling $1.148 billion.
On an adjusted basis, Rivian saw a loss of $1.26 per share, with analysts expecting a $1.14 per share loss.
Rivian ended Q2 with $7.867 billion in cash, cash equivalents and short-term investments. This includes $1 billion of an unsecured convertible note issued to Volkswagen.
Meanwhile, the EV startup reported that cost of revenues came out to around $4,278 per vehicle delivered in the quarter. Rivian lost around $32,700 per vehicle in the second quarter. In Q1, Rivian lost more than $38,700 per vehicle delivered.
Rivian reported that it saw an improvement in gross profit per vehicle delivered in the second quarter as compared to the first quarter of 2024.
"The second quarter has been a defining one for Rivian," Chief Executive RJ Scaringe said Tuesday in the earnings release. "The changes we made to the R1 platform have allowed us to reduce material and manufacturing costs, while simultaneously improving performance and capabilities."
Rivian stock dropped 6.9% to 13.79 during market action on Wednesday. RIVN shares angled 1.3% higher to 14.80 on Tuesday. Rivian stock is now down around 16% in August, testing support at the 200-day moving average.
In early July, Rivian announced it delivered 13,790 vehicles in Q2 and produced 9,612 units at its manufacturing facility in Normal, Ill. Rivian also reaffirmed full-year production guidance of 57,000 units. Analysts had forecast second-quarter deliveries of 12,000, according to FactSet.
Rivian also affirmed in recent months its goal of positive gross profit per vehicle by the fourth quarter. The startup has said its path to gross profit per unit delivered is primarily by reducing material costs, along with regulatory credits and other efforts.
Rivian's Volkswagen Deal
Meanwhile, Rivian also announced in June a joint venture with Volkswagen. The $5 billion plan involves the global auto giant investing in the EV startup in order to leverage some of its engineering and designs.
The partnership will focus on software along with electrical architecture design and development, according to Rivian executives. Currently, the joint venture does not include battery technology, propulsion platforms, high-voltage systems or autonomous driving.
However, German language-outlet Handelsblatt reported in July that Volkswagen and Rivian are apparently looking at expanding its partnership to include hardware and joint production. VW's U.S. electric brand "Scout" could also be included in the partnership with Rivian, according to the report.
The two companies expect the deal will total $5 billion. This includes an initial $1 billion investment by Volkswagen and then plans for another $4 billion.
Scaringe said Tuesday in the Q2 earnings release that the integration with Volkswagen is "moving along very well" and that Rivian expects to close the joint venture in the fourth quarter.
"The output from our joint venture will see Rivian's technology in vehicles all around the world, helping to create more consumer choice and speed up the transition away from fossil fuels," Scaringe said.
Rivian Stock Performance
While Rivian stock has declined so far in August, RIVN shares have booked three consecutive monthly advances. Rivian stock has advanced 68% since the end of April.
However, the stock is down 36% in 2024, underperforming the broader market. For comparison, Tesla has declined 21% this year. RIVN is 80% below its November 2021 IPO price of $78, according to MarketSurge analysis.
Rivian stock ranks fourth in IBD's Automakers industry group. RIVN has a 48 Composite Rating out of 99. Additionally, the stock has a 67 Relative Strength Rating and its EPS Rating is 29 out of 99.
Please follow Kit Norton on X @KitNorton for more coverage.
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