Rivian isn’t making a profit yet, but remains confident it could break even this year
- Although the company posted losses in the first quarter, Rivian expects it can be profitable in 2024.
- By delaying construction of its second manufacturing facility in Covington, Georgia, the company will save money this year.
- Speeding up production will help generate more sales.
Rivian’s decision to pause construction of its Covington plant may have unsettled Georgians a little, but it will help the company begin production of the R2 sooner and save $2.25 billion this year so it can make a modest profit in 2024 said in its first quarter earnings report.
Total revenue increased to $1.2 billion in the first quarter of 2024, up 80 percent from $661 million a year earlier, driven primarily by deliveries of 13,588 vehicles, an increase of 71 percent compared to the same period last year. Production also increased by 48 percent.
Rivian reports that regulatory credit contributed only a small portion of the quarter’s overall profit. The startup also said it ended the first quarter with $7.8 billion in cash, cash equivalents and short-term borrowings
Read: Rivian gets $827 million from Illinois to build R2 SUV
However, there is still work to be done for the automaker, which posted an operating loss of $1.45 billion in the first quarter. However, given the lower costs associated with the R2 and better-than-expected first-quarter delivery numbers, Rivian is confident it can get out of the red.
“First quarter results exceeded our guidance and provided a solid foundation for the remainder of the year as we focus on continued demand generation, achieving cost and asset efficiency improvements, advancing R2 development and pursuing profitability,” said RJ Scaringe, CEO of Rivian.
Adding to Rivian’s optimism for the year ahead is that its performance exceeded production forecasts for the first three months of 2024, with the completion of 13,980 vehicles. Additionally, recent improvements at its Normal, Illinois facility will enable a 30 percent faster production rate for R1 vehicles.”
“We achieved several milestones this quarter, including producing our 100,000th normal vehicle, successfully completing the conversion upgrade and introducing our new mid-size platform that underpins the R2, R3 and R3X,” Scaringe said. “It’s great to see the incredible support for our brand and upcoming products.”
However, investors did not share Rivian’s optimism and the share price fell 0.77 percent today. So far this year the share price has fallen 51 percent.
