{"id":75404,"date":"2024-08-07T15:10:44","date_gmt":"2024-08-07T19:10:44","guid":{"rendered":"https:\/\/autosector.com\/?p=75404"},"modified":"2024-08-07T15:10:44","modified_gmt":"2024-08-07T19:10:44","slug":"rivians-rivn-stock-falling-after-pivotal-q2-report","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=75404","title":{"rendered":"Rivian (RIVN) stock slips after pivotal earnings: Here’s why the CEO is defending its progress"},"content":{"rendered":"
\n\t\"Rivian-stock-Q2\"<\/figure>\n

Rivian\u2019s (RIVN) stock is down after a \u201cpivotal\u201d Q2 earnings. Although it wasn\u2019t enough to convince investors, Rivian\u2019s<\/a> CEO is defending the EV maker\u2019s progress over the past few months as it preps for its next growth stage. Here\u2019s what Rivian\u2019s CEO, RJ Scaringe, had to say.<\/p>\n

<\/p>\n

Rivian\u2019s stock tumbles following Q2 2024 earnings<\/h2>\n

After shutting down its Normal, IL plant for upgrades in April, Rivian\u2019s production slipped in the second quarter while deliveries remained flat.<\/p>\n

Although this was expected, investors are not convinced of (or have not fully digested) the changes.<\/p>\n

Rivian released its Q2 2024 earnings<\/a> report Tuesday with $1.15 billion in revenue, meeting Wall St forecasts. Despite this, Rivian\u2019s losses widened slightly to $1.46 billion, or $1.46 per share, compared to a $1.2 billion ($1.27 loss per share) in Q2 2023.<\/p>\n

After making \u201cSignificant progress driving greater cost efficiency, improving its products, and further strengthening its balance sheet\u201d in Q2, Rivian still lost $32,705 on every EV build.<\/p>\n

\n\n\n\n\n\n
Q3 \u201922<\/td>\nQ4 \u201922<\/td>\nQ1 \u201923<\/td>\nQ2 \u201923<\/td>\nQ3 \u201923<\/td>\nQ4 \u201923<\/td>\nQ1 \u201924<\/td>\nQ2 \u201924<\/td>\n<\/tr>\n
Rivian loss per vehicle<\/strong><\/td>\n$139,277<\/td>\n$124,162<\/td>\n$67,329<\/td>\n$32,594<\/td>\n$30,500<\/td>\n$43,372<\/td>\n$38,784<\/td>\n$32,705<\/td>\n<\/tr>\n<\/tbody>\n<\/table>
Rivian loss per vehicle by quarter<\/figcaption><\/figure>\n

Although that\u2019s an improvement from Q1\u2019s $38,784 loss, it\u2019s still up slightly from the $32,594 loss in Q2 2023.<\/p>\n

Rivian\u2019s investors were apparently not impressed with stock prices tumbling over 5% on Wednesday. Rivian\u2019s shares are down 42% over the past 12 months.<\/p>\n

\"Rivian-stock-Q2\"
Rivian (RIVN) stock chart following Q2 2024 earnings (Source: TradingView)<\/figcaption><\/figure>\n

Light at the end of the tunnel<\/h2>\n

Despite the wider loss, Rivian reaffirmed all guidance, including achieving its first gross profit by the end of the year.<\/p>\n

\u201cWe need to aggressively drive towards profitability,\u201d Scaringe said on the company\u2019s Q2 earnings<\/a> call. Rivian expects a modest gross profit in the fourth quarter of 2024.<\/p>\n

\"Rivian-stock-Q2\"
Production at Rivian\u2019s Normal, IL plant (Source: Rivian)<\/figcaption><\/figure>\n

The biggest reason behind Rivian\u2019s confidence is the drastic changes taking place in Normal. Scaringe explained that the company\u2019s plant upgrades are a \u201cpivotal\u201d moment. Rivian cut out 100 steps from battery making, 50 body shop components, and 500 parts from design.<\/p>\n

After introducing new tech, more efficiency, and improving supplier contracts, Scaringe believes they will enable \u201csignificant material cost reductions.\u201d<\/p>\n

\"Rivian-stock-Q2-2024-earnings\"
Rivian R1T (left) and R1S (right) electric vehicles (Source: Rivian)<\/figcaption><\/figure>\n

Rivian introduced its second-gen R1S and R1T<\/a> earlier this summer. The second-gen models have been re-engineered to cut costs. For example, 65 parts and nearly 1,500 joints have been eliminated. Following the upgrades, Rivian expects a 30% improvement in the R1 production line rate.<\/p>\n

With new in-house motor configurations, Rivian is seeing dramatic cost improvements. Its new Ascent Tri motor costs 32% less than its Origin Quad, while the Ascend Quad costs 24% less.<\/p>\n

\"Rivian-stock-Q2-2024-earnings\"
(Source: Rivian)<\/figcaption><\/figure>\n

The next generation<\/h2>\n

The new technology will serve as the foundation for Rivian\u2019s next-gen R2. Rivian expects to begin R2 production in Normal in early 2026. <\/p>\n

Starting at $45,000, the R2 is nearly half the cost of Rivians R1S and R1T. Rivian\u2019s flagship R1 models helped establish it as a true premium EV maker, but R2 will open it up to the mass market.<\/p>\n

\"Rivian-R2-Tesla-Model-Y\"
Rivian R2 (Source: Rivian)<\/figcaption><\/figure>\n

Scaringe said the R2 is \u201cWorlds different\u201d from Tesla\u2019s Model Y<\/a> as it looks to grab a share of the surging mid-size SUV market.<\/p>\n

Rivian\u2019s R2 already has \u201cwell over 100,000\u201d pre-orders<\/a> and climbing, according to Rivian\u2019s Vice President of Manufacturing Tim Fallon.<\/p>\n

\"Rivian-R2-Tesla-Model-Y\"
Rivian\u2019s next-gen R2, R3, and R3X (Source: Rivian)<\/figcaption><\/figure>\n

Once R2 production begins, it will account for the majority of Rivian\u2019s output. Rivian plans to build 155,000 R2 models annually and about 85,000 R1S and R1Ts in Normal.<\/p>\n

Speaking with Bloomberg<\/a><\/em> following Rivian\u2019s Q2 earnings, Scaringe defended the company\u2019s progress despite the stock slipping.<\/p>\n

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