The Rivian Automotive Inc (NASDAQ: RIVN) stock price was trading up 1.25% premarket as the company’s stock tried to recoup yesterday’s losses, triggered by the release of its Q2 2023 financial results. Rivian stock fell despite the upbeat nature of the Q2 earnings report.
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The electric vehicle manufacturer announced that its gross profits per vehicle had improved by $35,000, fueled by the company’s cost-cutting measures, including adopting LFP battery packs, the in-house manufacturing of the Enduro electric drive units, and the price cuts negotiated with suppliers.
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Investors were pleased to see that the EV company reported a 50% increase in vehicle production compared to Q1 2023. The company manufactured 13,992 vehicles in Q2 2023 and delivered 12,640 units. The company’s production figures beat analysts’ estimates of 11,000 vehicles for Q2.
Rivian continues to lose money for each vehicle it produces despite the recent profit improvement. The company currently loses $32,595 per vehicle unit, declining from the $67,329 loss per vehicle in Q1 2023 and the massive $124,162 loss per vehicle in Q4 2022.
The EV company reassured investors that it could continue lowering the loss per vehicle by ramping production, leveraging its fixed costs, making commercial engineering design changes, and reducing operational costs. Investors look forward to the day the firm breaks even and starts generating a profit.
Rivian generated $1.12 billion in revenue in Q2 2023, marking an increase from $661 million in Q1, primarily driven by the 50% increase in production and a 60% increase in deliveries compared to Q1.
Rivian founder and CEO RJ Scaringe said: “Our second quarter results reflect our continued focus on cost efficiency as we accelerate the drive towards profitability. On a quarter-over-quarter basis, delivered vehicles grew around 60% while gross profit per vehicle improved by about $35,000. We have achieved meaningful reductions in both R1 and EDV vehicle unit costs across the key components, including material costs, overhead, and logistics. It was a strong quarter, and we remain focused on ramping production, driving cost efficiencies, developing future technologies, and enhancing the customer experience.”
Rivian stock price.
The Rivian stock price was up 1.25% at $22.63, trying to rally higher after yesterday’s 9.88% decline.
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