Rivian Automotive (RIVN) Q2 2024 earnings summary

Executive summary

• Achieved significant operational milestones with the ramp of second-generation R1 vehicles and development of the R2 platform, targeting a 2026 launch.

• Announced a major technology joint venture with Volkswagen Group, validating the technology platform and securing up to $5 billion in investments.

• Completed pivotal retooling at the Normal facility, introducing cost-saving manufacturing improvements and supporting new product launches.

• Delivered strong Q2 vehicle deliveries, selling through most first-generation R1 inventory and launching upgraded models.

• Revenue grew 3% year-over-year to $1,158M for Q2 2024, but net loss widened to $1,457M from $1,195M in Q2 2023.

Financial highlights

• Produced 9,612 vehicles and delivered 13,790 vehicles in Q2 2024, generating $1.16 billion in revenue.

• Total gross profit was negative $451 million, with a gross profit loss per vehicle delivered of approximately $33,000.

• Net loss for Q2 2024 was $1,457 million, up from $1,195 million in Q2 2023.

• Cash and cash equivalents at June 30, 2024, were $5,763 million; total liquidity including short-term investments and ABL Facility was $9,179 million.

• Regulatory credit sales reached $17 million in Q2, with over $200 million under contract for 2024.

Outlook and guidance

• Reaffirmed 2024 production guidance of 57,000 units and low single-digit delivery growth versus 2023.

• EBITDA guidance for 2024 is -$2.7 billion, with capital expenditures expected at $1.2 billion.

• Targeting modest positive gross profit in Q4 2024 and for the full year 2025.

• Long-term goals include 25% gross margin, high teens adjusted EBITDA margin, and 10% free cash flow margin.

• Expects to close the Volkswagen joint venture in Q4 2024, with future technology integration into both companies' vehicles.