Dive Brief:
- Rivian reported revenue of $1.12 billion in the second quarter compared to $661 million in Q1, buoyed by a big jump in deliveries as a result of production ramp up, the company announced in a shareholder letter on Tuesday.
- Rivian produced a total of 13,992 vehicles in Q2 with deliveries of 12,640. The company’s revenue also included $34 million from the sale of regulatory credits.
- Cost reductions and a boost in deliveries resulted in narrowing losses for Rivian. Net loss for Q2 2023 was $1.19 billion compared to $1.71 billion in the same period last year.
Dive Insight:
In an earnings call on Tuesday, Rivian said it reduced costs for the R1S pickup and R1T SUV, along with delivery vans for Amazon, across all major categories, including material cost, manufacturing labor, overhead and logistics.
Although Rivian is still losing money on each vehicle, the company’s gross profit per vehicle improved by approximately $35,000 compared to the first quarter when it lost $67,329 per vehicle.
“Production continues to ramp, which is translating into improved profitability and capital efficiency,” said Rivian CEO RJ Scaringe during Tuesday’s earnings call.
Total operating expenses in the second quarter of 2023 fell to $873 million as compared to $1 billion in the same period last year.
Rivian also ramped up production of its R1S SUV, which accounted for roughly 70% of its quarterly production total. Going forward, Rivian anticipates that its sales will be heavily weighted toward the R1S, as SUVs are a popular segment in the U.S. market.
“It's also important to note the R1S is more profitable than the R1T,” Scaringe said.
Rivian ended the second quarter with $10.2 billion in cash, cash equivalents and short-term investments. The company says that its cash on hand is enough to fund operations through 2025.
