Coinspeaker
Rivian Delivers Better-Than-Expected Q2 2023 Revenue, Raises Production Targets
Electric vehicle maker Rivian Automotive Inc (NASDAQ: RIVN) has released its Q2 2023 earnings, delivering great results and beating experts’ expectations. Besides, Rivian reduced its losses and increased gross profit per vehicle. With good sales for the second quarter, Rivian is planning to raise its production target for the next three months.
Rivian Q2 Earnings: Highlights
For the quarter that ended on June 30, 2023, Rivian generated a $1.12 billion revenue, higher than the $1 billion expected. Further, the company reported an adjusted loss of $1.08 per share, beating an estimate of a loss of $1.41 per share. The net loss was $1.19 billion, down from $1.7 billion in the same quarter last year.
The revenue has been driven by strong production. Within the first half of 2023, Rivian produced 23,387 vehicles, which is in line with the production volumes the company achieved for the full 2022. In the second quarter of 2023, Rivian manufactured 13,992 and delivered 12,640 vehicles. The numbers mark a nearly 50% increase in production compared to the prior quarter.
Rivian CEO RJ Scaringe commented:
“Our second quarter results reflect our continued focus on cost efficiency as we accelerate the drive towards profitability. On a quarter-over-quarter basis, delivered vehicles grew around 60% while gross profit per vehicle improved by about $35,000. 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.”
The performance shows that the company has managed to settle its issues with suppliers, as well as cut the costs such as ‘material cost, manufacturing labour, overhead and logistics’.
According to Rivian, it also maintains its focus on improving customer experience. Its more than 280 mobile service vehicles on the road are handling over 50% of Rivian vehicle repairs. Currently, the company has 43 physical service centers opened, with 17 more centers scheduled to open by the end of the year.
Raised Production Guidance
Following the progress achieved in Q2 2023, Rivian is expecting to raise its previous full-year production guidance from 50,000 units to 52,000 units.
Rivian stated:
“Due to the progress we have seen to date on our production lines, the ramp of our in-house motor line, and the supply chain outlook, we are increasing our 2023 production guidance to 52,000 total units.”
Besides, following effective cost-cutting measures taken during the first half of the year, Rivian lowered its 2023 capital expenditures guidance to $1,700 million.
“For the remainder of 2023, we intend to maintain the momentum of the first half of the year by continuing to deliver against our value drivers: production ramp, cost efficiency, future platforms and technologies, and customer experience,” said the company.
Currently, Rivian is looking for new partnerships that will allow it to improve its technology and ramp up production.
Recently, Rivian has acquired Iternio, developer of the ‘A Better Routeplanner’ (ABRP) app that allows EV drivers to plan their routes and check the nearest and most convenient charging stations.
In addition, Rivian has partnered with Amazon.com Inc (NASDAQ: AMZN) to bring 100,000 electric delivery vehicles on the road by 2030.
Rivian Delivers Better-Than-Expected Q2 2023 Revenue, Raises Production Targets
