The Rivian logo is seen on a Rivian R1T Truck parked outside the Allen & Company Sun Valley Conference on July 08, 2022 in Sun Valley, Idaho. The world's most wealthy and powerful businesspeople from the media, finance, and technology will converge at the Sun Valley Resort this week for the exclusive conference. Kevin Dietsch/Getty Images
Rivian Automotive reported a stronger-than-expected performance for the second quarter of 2024, surpassing Wall Street's revenue and earnings estimates. While the electric vehicle maker suffered massive losses, it managed to beat expectations by focusing on cost reductions and efficiency improvements.
According to CNBC, Rivian's earnings per share for the quarter showed a loss of $1.13, slightly better than the projected loss of $1.21, while its automotive revenue reached $1.16 billion, surpassing the anticipated $1.14 billion.
Despite these positive results, Rivian's net losses widened to $1.46 billion, up from $1.2 billion a year earlier. The company's adjusted EBITDA remained largely unchanged from the previous year, at a loss of $860 million.
At the moment, Rivian has been working diligently on reducing costs, which is reflected in its production adjustments and retooling efforts at its plant. With that, the company also reaffirmed its production guidance for 2024, targeting 57,000 units, and is aiming for a positive gross profit by the fourth quarter.
This comes as cost-cutting has included changes in its production and material costs. The company has targeted a 20% reduction in material costs for current vehicles and a 45% reduction for its upcoming "R2" vehicles, expected to begin production in early 2026.
The company's stock has been down 37% this year, reflecting ongoing concerns about its financial health and market performance. However, Rivian's management remains optimistic, noting improvements in production efficiency and a solid liquidity position with $9.18 billion in total resources.
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