Rivian (RIVN) reported mixed quarterly results for the first quarter but will see further cost savings from shifting its upcoming R2 production to its Normal, Ill., plant and trimming its capital expenditure forecast. The EV maker also reaffirmed its full-year loss forecast and still sees a “path” to “modest gross profit” in the fourth quarter of this year.
For the quarter, Rivian reported revenue of $1.20 billion versus $1.17 billion expected, which is an 80% jump from a year ago. However, Rivian posted a loss per share of $1.48 versus $1.27 estimated, with an operating loss of $1.484 billion compared to the $1.299 billion loss expected.
Rivian reaffirmed its adjusted EBITDA loss forecast of $2.7 billion for 2024 but now sees its capital expenditure outlays improving to $1.2 billion from $1.75 billion seen earlier. This is due to the company moving the start of R2 production to its Normal, Ill., plant, and further savings expected in 2025 and 2026.
Rivian stock slipped 5% in early trade on Wednesday.
“We hit several milestones this quarter, including producing our 100,000th vehicle in Normal, successfully navigating the retooling upgrade, and unveiling our new midsize platform, which underpins the R2, R3, and R3X,” CEO RJ Scaringe said in a statement.
The company also said that as a result of its retooling upgrade and other improvements, Rivian remains “confident in its path to achieving modest gross profit in the fourth quarter of this year.”
By shifting R2 production to its existing US factory instead of its upcoming Georgia factory, Rivian said on Tuesday the company will save more than $2.25 billion. Following the R2 launch and plant changes, the company now expects its Normal plant to hit 215,000 units of total annual capacity across all vehicles, which includes up to 155,000 units of the R2.
In terms of its cash cushion, Rivian said it had $5.98 billion at the end of Q1 versus $7.86 billion at the end of Q4.
Last month, the company reported first quarter R1T and R1S production of 13,980 and deliveries of 13,588, topping expectations of around 12,400 units. The company also reaffirmed production guidance of 57,000 vehicles in 2024.
Part of bringing down those costs came in the form of a 10% salaried staff reduction, with the company citing economic uncertainty. Though Rivian reaffirmed its forecast to reach “modest gross profit” by the end of 2024, Rivian didn’t reiterate past statements that it was “very close” to achieving a positive contribution margin at the end of 2023.
Earlier this year Rivian said its Georgia factory development was suspended for the moment, though Georgia Governor Brian Kemp said Scaringe reaffirmed the company wasn’t abandoning the project.
Scaringe said once the R2 was ready for a larger rollout, the upcoming Georgia facility would handle it. The company also said it would be launching its R2 in Europe, which would be a huge market for the company, as it’s not currently selling its larger R1 vehicles on the continent.
Correction: An earlier version of this post misstated Rivian’s EPS loss. We regret the error.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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