Rivian (RIVN) to Report Key Q2 Results: Here’s What to Expect

It’s EV earnings season again, and Rivian (RIVN) is set to report key Q2 2024 results on Tuesday, August 6, 2024, after the bell. Rivian is aggressively cutting costs to hit gross profit by year-end. Here’s what to expect from the Q2 report.

Rivian delivered 13,790 vehicles in the second quarter, a slight increase compared to the first three months of the year (13,588).

Production at the Normal, Illinois, plant fell from more than 17,500 vehicles in the fourth quarter of 2023 to 13,980 in the first quarter of 2024. This trend continued, with only 9,612 vehicles produced in the second quarter.

The slowdown was expected after a planned shutdown in April dragged Rivian’s momentum. CEO RJ Scaringe has said several times that the upgrades have had a “significant” impact on costs and efficiency.

For example, 100 steps in the battery manufacturing process, more than 50 body shop components and 500 design parts have been eliminated.

Rivian has also significantly reduced the cost of its powertrains. The latest Enduro Dual Performance inboards cost 47% less than the Origin Quad engine.

With the introduction of new technologies such as the Maximus engine or the “Enduro Gen 2”, Rivian expects even greater cost reductions. The new engine will be used in the next-generation R2 and R3 vehicles.

Rivian to Report Key Q2 2024 Results

However, Rivian’s R2 model is not scheduled to launch until early 2026. Although the company reported a $1.4 billion loss in the first quarter, Rivian expects to achieve its first positive gross profit by the end of the year.

Rivian will report its second-quarter 2024 earnings on August 6, 2024. After aggressive cost cutting, most of the progress won’t be seen until the third quarter, according to Scaringe.

	Q3 2022	Q4 2022	Q1 23	Q2 2023	Q3 2023	Q4 2023	Q1 24
Rivian’s loss per vehicle	$139,277	124,162 dollars	$67,329	$32,594	$30,500	$43,372	$38,784

Scaringe has already warned that the second quarter will be “dirty” for investors due to plant closures and other investments.

According to EstimateRivian is expected to report a loss of $1.17 per share on revenue of $1.18 billion in the second quarter of 2024. Wall Street is expecting a loss of $1.24 per share on revenue of $1.15 billion.

Still, Rivian remains on track to profitability, executives reiterate. Rivian announced a massive deal with Volkswagen to develop next-generation EV architectures using its software expertise.

VW will invest up to $5 billion, of which $3 billion will go to Rivian. The remaining $2 billion will go to the joint venture. Investments are based on achieving certain milestones.

The deal earned Rivian shares a few boosts on Wall Street. Guggenheim analyst Ronald Jewsikow said, “We see a credible path to gross breakeven” in the fourth quarter.

Yevsikow sees Rivian’s recent plant upgrades and supplier negotiations as key to achieving positive gross profit. Meanwhile, Q2 is likely to be another speed bump as Rivian continues to push toward profitability.

Rivian shares are up 42% over the past three months, but the stock price has fallen 40% over the past year.

Check back tomorrow, Tuesday, August 6, 2024, for a deeper look at Rivian’s financials following its Q2 earnings release and investor call.