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Rivian stock dips as EV maker keeps production outlook unchanged, posts wider loss

Published 2024-08-07, 04:40 a/m
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Investing.com -- Rivian reported Tuesday a wider loss in the second-quarter as the electric vehicle (EV) maker produced fewer vehicles in the quarter amid changes to its R1 platform targeting improved efficiency.  

Rivian (NASDAQ:RIVN) Automotive Inc (NASDAQ: RIVN) fell more than 5% in premarket trading Wednesday.

The EV maker reported a loss of $1.46 a share on revenue of $1.14 billion, compared with estimates for a loss of $1.25 on revenue of $1.14B.

The company produced 9,612 and delivered 13,790 vehicles in Q2, compared with 13,980 and 13,588 in Q1, respectively. 

"The changes we made to the R1 platform have allowed us to reduce material and manufacturing costs, while simultaneously improving performance and capabilities," the company said.

"During the second quarter, the company introduced and started deliveries of the second generation R1 vehicles," it added.

The adjusted EBITDA loss of $860.0 million aligned closely with the consensus of $852.9 million. The gross loss of $451.0 million improved from a $527.0 million loss in the previous quarter and outperformed the $412.0 million loss in 2Q23.

The EV company also said it teamed up with a Volkswagen (ETR:VOWG_p) Group to create a technology joint venture with a total deal size of $5B.  

Looking ahead, the company reaffirmed guidance for the year, forecasting a modest gross profit for Q4.

It also maintained its annual production target of 57,000 units and expects Q3 deliveries to be slightly lower.

Commenting on the report, Stifel analysts said they view the report and outlook "as about neutral for the shares near term and supportive of our positive longer-term view for RIVN."

Separately, Mizuho analysts reiterated a Neutral rating and $15 on the stock.

"RIVN has a good product roadmap with its lower-cost R2 in 1H26E, while VW deal provides improved balance sheet with less liquidity risk, though we see US EVs softer with potential 2H24/25E demand challenges," they noted. 

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