Rivian investor day focuses on cost-cutting, efficiency gains, reaffirms 2024 guidance for production and profitability.

From CNBC: 2024-06-27 16:41:38

Rivian’s investor event focusing on cost-cutting and efficiency didn’t boost share growth after a 23% increase from a $5 billion investment by Volkswagen. Stock fell 1.8% to $14.47 per share, down 39% year-to-date. The automaker reaffirmed its 2024 guidance for production and profitability, targeting positive free cash flow and margins this year.

Rivian outlined long-term financial targets, including 25% gross margin and high teens adjusted profit margin. CEO RJ Scaringe highlighted efficiencies in products and manufacturing, projecting 20% material cost reductions in current vehicles and 45% in upcoming R2 vehicles. VW’s investment and joint venture focus on electrical architecture and software technology.

Volkswagen is expected to use Rivian’s software stack for vehicles starting in the second half of the decade. The capital from VW is set to strengthen Rivian’s balance sheet to support production of R2 SUVs and midsize EV platform. Rivian bets on next-gen EVs for growth and targeted profitability in the second half of the decade, with R2 vehicles expected to make up majority of production capacity.



Read more at CNBC: Rivian investor day focuses on cost reductions, efficiency gains