Rivian, the electric truck maker, has recently announced its Q1 2024 results, surpassing analyst estimates on revenue but falling short on earnings expectations. Despite facing wider losses than anticipated, the company remains optimistic about achieving a profit by the end of the year.
During the first quarter of 2024, Rivian reported steady delivery numbers with 13,588 units, marking a 71% increase compared to the same period last year. The company also achieved a 5.1% market share in US EVs, a notable accomplishment considering its focus on upmarket vehicles, particularly the R1S model, which is currently the best-selling EV priced above $70,000.
Although Q1 is typically a slower quarter for vehicle deliveries, Rivian’s year-over-year growth demonstrates its ongoing expansion in the EV market. Analysts had predicted revenue of $1.175 billion for the quarter, with an expected loss of $1.15 per share. However, Rivian surpassed these projections by generating $1.204 billion in revenue, albeit with a wider loss of -$1.48 per share. The company’s revenue showed an impressive 82% increase compared to the previous year.
Despite the positive revenue results, Rivian’s gross margin per vehicle saw only a slight improvement, with a loss of $38,784 per vehicle in Q1. This improvement, while indicative of progress, still falls short of the margins achieved in Q2 and Q3 of the previous year. The company attributes this margin enhancement to recent retooling efforts aimed at boosting efficiency and cost optimization.
Rivian recently concluded a plant shutdown that commenced on April 5, focusing on enhancing margins and operational efficiency. The company anticipates a 30% increase in efficiency following the retooling process. With the plant reopening on May 1, Rivian aims to achieve a slight positive gross profit by Q4 of this year.
The plant shutdown coincided with Rivian’s unveiling of its upcoming R2 and R3 vehicles, signaling the company’s expansion into more affordable and higher-volume segments. The R2 model is expected to launch at around $45,000 in the first half of 2026, while details regarding the R3 timeline and pricing are yet to be disclosed.
Following the recent earnings release, Rivian is set to hold an earnings call to provide further insights into its financial performance, including the impact of the plant shutdown and the progress made in cost optimization. The call, scheduled for 2PM PDT/5PM EDT today, will offer investors and stakeholders a deeper understanding of Rivian’s strategic direction and future prospects in the evolving EV market.
