Rivian Holds to Annual Production Goal Unchanged Since 2023
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Rivian Automotive maintained its full-year vehicle production target and profit-making goal, a sign the electric vehicle maker is filling orders on schedule after retooling its assembly lines.
The company said Aug. 6 that it expects to produce 57,000 EVs in 2024, unchanged from prior projections for this year and about the same volume as in 2023. It had previously reaffirmed the production target in July, a move that left investors underwhelmed.
Rivian also kept its forecast for a full-year loss of $2.7 billion and capital spending on the order of $1.2 billion. The Irvine, Calif.-based carmaker said it’s on track to earn a “modest gross profit” by the end of the year, something that CEO R.J. Scaringe has repeatedly promised investors.
The uneventful financial outlook follows a retooling of the carmaker’s factory in Illinois to boost efficiency, a decision to pause construction of a new plant in Georgia and a major partnership deal with Volkswagen AG.
Shares of Rivian fell 2.2% in post-market trading to $14.48 as of 4:55 p.m. in New York. The stock closed regular trading Aug. 6 down 37% this year.
For the second quarter, Rivian posted an adjusted loss of $1.13 per share, better than analysts’ expectations for a loss of $1.20. Sales came to $1.16 billion, below the consensus analyst estimate for $1.17 billion. Revenue earned from the sale of regulatory credits totaled $17 million, compared with a “de minimis” haul in the first quarter.
The EV maker has said second-quarter output came to 9,612 vehicles with deliveries totaling 13,790 in the period.
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Rivian is one of few pure-play electric vehicle makers in the U.S. and second only to Tesla Inc. in EV output. But the company has been struggling with production issues and slowing consumer demand for fully electric vehicles.
The manufacturer is trying to cut costs as it readies for production of its upcoming R2 model — a smaller, more affordable, compact SUV. Rivian makes three models: A midsize pickup, a midsize SUV and a commercial van, the latter primarily for key shareholder Amazon.com Inc.
RELATED: Rivian Hosts R2 Event in Illinois at New Production Home
The cash infusion of as much as $5 billion from VW is a welcome reprieve for the American company, which lost about $32,705 per vehicle built in the second quarter, down from roughly a loss of $39,000 the previous quarter. VW’s initial $1 billion investment has eased concerns Rivian might run out of cash before it can debut its latest models.
It expects to roll out the R2 in the first half of 2026 and has plans for next-generation R3 and R3X models thereafter.
