.August 7, 2024 4:31 PM

Rivian Automotive (NASDAQ:RIVN) saw its shares drop over 7% today following a larger-than-expected loss in the second quarter. The company attributed the loss to reduced vehicle production as it made adjustments to its R1 platform for improved efficiency. The company reported a loss of $1.46 per share on revenue of $1.14 billion, missing Street expectations.

In Q2, Rivian produced 9,612 vehicles and delivered 13,790, a decrease from the previous quarter. Changes to the R1 platform helped lower costs and enhance performance. The company also started deliveries of its second-generation R1 vehicles during the quarter. Rivian announced a $5 billion technology joint venture with Volkswagen Group.

Despite the Q2 challenges, Rivian reaffirmed its annual guidance and expects a modest gross profit in the fourth quarter. The company remains optimistic about its future prospects and the impact of its partnership with Volkswagen Group on its growth trajectory.