Rivian beats earnings expectations in Q2, but struggles with cash burn and sluggish EV demand.

From CNBC: 2024-08-06 16:16:33

Rivian exceeded Wall Street’s earnings expectations in Q2, with a loss of $1.13 per share versus an expected loss of $1.21. Automotive revenue reached $1.16 billion compared to an estimated $1.14 billion.

Adjusted net losses expanded to $1.46 billion for the quarter, with EBITDA remaining steady at a loss of $860 million. Rivian reaffirmed 2024 guidance of 57,000 units produced and a $2.7 billion EBITDA loss.

The EV maker produced 23,600 vehicles in the first half of 2024, with only 9,162 vehicles made in Q2 due to downtime for retooling. Rivian emphasizes cost-cutting efforts, efficiency gains, and in-house tech following $1 billion investment from Volkswagen.

Rivian stock has dropped 37% this year due to sluggish EV demand and cash burn issues. Closing at $14.80 per share on Tuesday, the company’s financial standing remains challenging amidst industry-wide challenges. More updates to follow.



Read more at CNBC:: Rivian tops second-quarter earnings expectations following cost cuts