Photo: Rivian | Edited
Rivian reported its first-quarter financial results, with the company's executives expressing optimism for its future. Rivian lost $1.35 billion in the quarter, an improvement over the $1.59 billion loss in Q1 2022. As stated before, the EV startup remains on track to deliver over 50,000 electric vehicles in 2023.
Two of the most promising EV startups, Lucid and Rivian, have reported their first-quarter financial results this week. The tone of each presentation couldn't be more different, though. While Lucid results were announced in a gloomy atmosphere, with a tangible sense of desperation hanging in the air, Rivian's presentation was more convincing. Rivian CEO RJ Scaringe was confident his company is on track for a good 2023, despite the negative cash flow. The results beat Wall Street expectations, though, and despite huge losses, the trend was clearly improving.
Rivian posted a net loss of $1.35 billion with revenue of $661 million in the quarter, exceeding expectations. The company is still burning through cash like there's no tomorrow, but Scaringe was confident that production bottlenecks were in the rearview mirror. The cost-cutting measures announced last year also show results, with the successful introduction of Rivian's Enduro drive unit being the most promising. The Enduro motor is developed in-house and provides significant cost improvements, allowing Rivian to reduce the bill of materials.
In the case of the electric delivery van, combining the Enduro motor with the lithium-iron-phosphate (LFP) battery packs allowed Rivian to reduce the cost of materials by 25 percent. The new drive units are so far used in EDV production and will launch on the R1 vehicles in the second half of the year. About half of all R1T trucks and R1S SUVs will feature the new drive unit, with the rest still featuring third-party-supplied motors as before.
Scaringe explained that the main reason for the large net losses reported quarter after quarter was the relatively low production from a high-volume factory. Rivian's Normal, Illinois, factory is designed to churn out 150,000 vehicles per year, three times the 2023 production goal. This makes the fixed costs weigh heavily on the company's balance sheet. Rivian needs to grow production volumes if it wants to offset these costs.
Unlike Lucid, Rivian still sits on a massive pile of cash, with $11.24 billion in its coffers. It's slightly lower than the $11.57 billion at the end of 2022, which puts Rivian in a good position to execute its plans. Rivian CFO Claire McDonough was confident the money would suffice to make it through 2025. The previous guidance of a $4.3 billion loss for 2023 remains unchanged, as is the 50,000 production estimate. Rivian is expected to reach profitability by the end of next year.
Scaringe offered a glimpse into the R2 vehicle platform, which should start production in 2026 at the company's second factory in Georgia. The more affordable line of electric vehicles would benefit from the cost savings achieved on the R1 lineup, allowing lower sticker prices.
Rivian posted a net loss of $1.35 billion with revenue of $661 million in the quarter, exceeding expectations. The company is still burning through cash like there's no tomorrow, but Scaringe was confident that production bottlenecks were in the rearview mirror. The cost-cutting measures announced last year also show results, with the successful introduction of Rivian's Enduro drive unit being the most promising. The Enduro motor is developed in-house and provides significant cost improvements, allowing Rivian to reduce the bill of materials.
In the case of the electric delivery van, combining the Enduro motor with the lithium-iron-phosphate (LFP) battery packs allowed Rivian to reduce the cost of materials by 25 percent. The new drive units are so far used in EDV production and will launch on the R1 vehicles in the second half of the year. About half of all R1T trucks and R1S SUVs will feature the new drive unit, with the rest still featuring third-party-supplied motors as before.
Scaringe explained that the main reason for the large net losses reported quarter after quarter was the relatively low production from a high-volume factory. Rivian's Normal, Illinois, factory is designed to churn out 150,000 vehicles per year, three times the 2023 production goal. This makes the fixed costs weigh heavily on the company's balance sheet. Rivian needs to grow production volumes if it wants to offset these costs.
Unlike Lucid, Rivian still sits on a massive pile of cash, with $11.24 billion in its coffers. It's slightly lower than the $11.57 billion at the end of 2022, which puts Rivian in a good position to execute its plans. Rivian CFO Claire McDonough was confident the money would suffice to make it through 2025. The previous guidance of a $4.3 billion loss for 2023 remains unchanged, as is the 50,000 production estimate. Rivian is expected to reach profitability by the end of next year.
Scaringe offered a glimpse into the R2 vehicle platform, which should start production in 2026 at the company's second factory in Georgia. The more affordable line of electric vehicles would benefit from the cost savings achieved on the R1 lineup, allowing lower sticker prices.
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