Rivian raises 2023 EV production guidance, posts narrower-than-expected quarterly loss

Electric vehicle maker Rivian Automotive on Tuesday reported a loss for the second quarter that was narrower than expected and raised its production guidance for the full year.

It now expects to build about 52,000 vehicles in 2023, more than twice the number it made in 2022 and up from its previous production guidance of 50,000 vehicles.

Rivian delivered 12,640 vehicles during the second quarter, up 59% from its first-quarter total and well above the 4,467 EVs it delivered in the second quarter of 2022. It produced 13,992 vehicles in the quarter, up from 9,395 in the first quarter of 2023 and 4,401 in the second quarter of 2022.

Here are the key numbers from Rivian’s report, with consensus analyst estimates as reported by Refinitiv:

• Adjusted loss per share: $1.08 vs. $1.41 expected.
• Revenue: $1.12 billion vs. $1 billion expected.

Rivian’s net loss for the quarter was $1.2 billion, or $1.27 per share. A year ago, Rivian reported a net loss of $1.71 billion, or $1.89 per share. On an adjusted basis, Rivian reported a loss of $1.02 billion, or $1.08 per share.

Revenue in the second quarter rose to $1.12 billion from $364 million in the same period in 2022. Rivian’s second-quarter revenue included $34 million from the sale of regulatory credits.

“Our second quarter results reflect our continued focus on cost efficiency as we accelerate the drive towards profitability,” CEO RJ Scaringe said in a statement to CNBC. “We have achieved meaningful reductions in both R1 and EDV vehicle unit cost across the key components, including material costs, overhead and logistics. It was a strong quarter, and we remain focused on ramping production, driving cost efficiencies, developing future technologies, and enhancing the customer experience.”

Rivian’s gross loss, or negative gross profit, was $412 million in the quarter, down from $704 million a year ago and a roughly $35,000 per vehicle improvement from the first quarter of 2023. Increased production, with the related economies of scale, and “our continued efforts to drive material cost reductions through commercial negotiations and engineering design change” drove the improvement, it said.

Rivian reiterated that it expects to reach a positive gross profit sometime in 2024.

The EV maker had $10.2 billion in cash remaining as of June 30, down from $11.78 billion as of March 31. It also had about $1.1 billion in credit lines available as of quarter end, for total liquidity of $11.3 billion. Capital expenditures in the second quarter were $255 million, versus $359 million in the same period last year.

For the full year, Rivian now expects about $1.7 billion in capex, down from $2 billion in its prior guidance.

Rivian took a number of steps earlier this year to slow spending and bolster its balance sheet, including a 6% staff reduction in February and a $1.3 billion sale of convertible notes in March. The company also delayed the launch of its upcoming smaller R2 vehicle platform to 2026, from 2025.

Rivian produced roughly 23,400 vehicles in the first half of 2023. The company is currently building the R1T pickup, the R1S SUV and a series of electric delivery vans for Amazon at its factory in Normal, Illinois.