Rivian Automotive (RIVN) Q2 2024 earnings summary

Executive summary

• Achieved significant progress in cost efficiency, technology validation, and new business opportunities in Q2 2024, including the launch of second-generation R1 vehicles and a pivotal joint venture with Volkswagen Group, with a total deal size of up to $5 billion.

• Ramped up production of new R1 variants, completed a major retooling at the Normal facility, and introduced in-house Tri-Motor and Quad-Motor configurations to reduce costs and improve performance.

• Produced 23,592 vehicles and delivered 27,378 vehicles in the first half of 2024, with 13,790 vehicles delivered in Q2 2024.

• 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.

• Significant investments in plant retooling, new vehicle platforms, and expansion of service and charging networks continue to impact profitability.

Financial highlights

• Q2 2024 revenue was $1,158M, driven by 13,790 vehicle deliveries; regulatory credit sales contributed $17M.

• Gross profit was negative $451M, with gross margin at (39%) and gross profit loss per vehicle delivered at ~$33,000.

• Net loss for Q2 2024 was $1,457M, up from $1,195M in Q2 2023; adjusted EBITDA was $(860)M.

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

• Cost of revenues included $59M in non-recurring items for Q2 2024, such as supplier liabilities and accelerated depreciation.

Outlook and guidance

• Reaffirmed 2024 production guidance of 57,000 units and EBITDA guidance of -$2.7B, with all aspects of 2024 guidance maintained.

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

• CapEx for 2024 expected at $1.2B; 2025 CapEx estimated at ~$1.5B.

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

• Normal facility to undergo a one-month shutdown in H2 2025 for R2 integration.