Rivian (RIVN) reported mixed quarterly results in the first quarter, but will likely see further cost savings by moving future R2 production to its Normal, Illinois facility and lowering its capital spending forecast. The company also reaffirmed its full-year loss forecast and believes it still has a “pathway” to “decent gross profit” in the fourth quarter of this year.
For the quarter, Rivian reported revenue of $1.204 billion, compared to expectations of $1.175 billion. This is an 80% increase compared to the same period last year. However, Rivian reported a per-share loss of $1.45, compared to his estimate of $1.27, and an operating loss of $1.484 billion, compared to an expected loss of $1.299 billion.
Rivian reaffirmed its outlook for an adjusted EBITDA loss of $2.7 billion in 2024, but capital expenditures will decline from the previous $1.75 billion as it moves production of the R2 to its Normal, Illinois, plant. The company expects further savings to improve to $1.2 billion. In 2025 and 2026.
Rivian stock fell 5% in early trading Wednesday.
“This quarter, we produced our 100,000th vehicle normally, completed several successful retrofit upgrades, announced a new mid-size platform that underpins the R2, R3, and R3X, and many more,” CEO RJ Scaringe said in a statement. We have achieved that milestone.”
The company also said that as a result of equipment renovations and other improvements, Rivian “remains confident on its path to achieving decent gross margins in the fourth quarter of this year.”
Rivian said Tuesday that the company will save more than $2.25 billion by moving R2 production to an existing U.S. factory rather than a new plant in Georgia. The company currently expects that after the launch of the R2 and factory changes, the normal factory will have a total annual production capacity of 215,000 vehicles, including up to 155,000 R2s.
Rivian said it had a cash cushion of $5.98 billion at the end of the first quarter, compared to $7.86 billion at the end of the fourth quarter.
Last month, the company reported production of 13,980 R1T and R1S units and 13,588 units delivered for the first quarter, exceeding expectations of approximately 12,400 units. The company also reaffirmed its forecast for production volume of 57,000 units in 2024.
As part of these cost-cutting efforts, the company has reduced employee salaries by 10% due to economic uncertainty. Rivian reaffirmed its outlook for reaching “moderate gross margins” by the end of 2024, but did not repeat previous statements that it was “very close” to achieving a positive contribution margin by the end of 2023. Ta.
Earlier this year, Rivian announced that development of the Georgia factory had been halted for the time being, but Georgia Governor Brian Kemp said Scaringe had reassured him that the company was not abandoning the project.
Scaringe said that once R2 is ready for large-scale deployment, he will be responsible for deployment at a future facility in Georgia. The company also said it would launch the R2 in Europe, which would be a huge market for the company as it currently doesn't sell the larger R1 car on the continent.
Pras Subramanian is a reporter for Yahoo Finance.you can follow him twitter And even more Instagram.
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