Published , by Ozzie Mejia
Published , by Ozzie Mejia
Turning to the world of electric vehicles, Rivian (RIVN) has reported in with its Q2 2023 earnings results. The company had initially expected a greater loss for the quarter, but the final numbers appear to point to a greater revenue total than anticipated. As a result, Rivian has raised its production guidance for the remainder of the year.
According to CNBC, Rivian recorded a net loss of $1.2 billion USD for the quarter, which is down from the $1.71 billion loss recorded last year. In total, Rivian recorded a revenue total of $1.12 billion, which is higher than the $1 billion that the company had expected to report and significantly higher than the $364 million reported at this time last year. The adjusted loss per share number is in at $1.08/share compared to the $1.41/share number that was expected.
The following was posted to the Rivian Q2 2023 Shareholder Letter:
Results for the second quarter of 2023 reflect strong financial and operational progress as we continued to ramp production, improved cost efficiency, successfully introduced new technologies, and enhanced the customer experience. On a quarter-over-quarter basis, production and deliveries grew ~50% and ~60%, respectively while gross profit per vehicle delivered improved by ~$35,000. For the first time since our start of production, R1S production outpaced the R1T, with the R1S representing ~70% of our total R1 production. We also successfully introduced our in-house Enduro motor into the R1 platform.
Due to the progress we have seen to date on our production lines, the ramp of our in-house motor line, and the supply chain outlook, we are increasing our 2023 production guidance to 52,000 total units. Our progress on cost management has also continued and therefore we are improving our Adj. EBITDA guidance to $(4,200) million. We are also lowering our capital expenditures guidance to $1,700 million with the reduction largely driven by a timing shift of some expenses to 2024.
We remain laser focused on earning the trust of the Rivian community. With over 300 million miles driven by Rivian vehicles, brand awareness continues to grow. The most vocal brand advocates are our customers; Rivian owners are forming communities across the country and creating experiences for current and future Rivian customers. These communities, often selforganized, are hosting beach clean ups, social events, and outdoor adventures, creating a strong sense of community and providing invaluable feedback that forms the foundation of future improvement in our vehicles. We want to thank all of the members of the growing Rivian community.
For the remainder of 2023, we intend to maintain the momentum of the first half of the year by continuing to deliver against our value drivers: production ramp, cost efficiency, future platforms and technologies, and customer experience.
Rivian (RIVN) finished the trading day up $0.52/share. The stock price has taken a modest tumble in after-hours trading.
Rivian now expects to build roughly 52,000 vehicles over the remainder of 2023. That would double its output from 2022 and is also up from the previous guidance number of 50,000 units. The latest quarterly earnings can be attributed to several factors, including a six percent workforce reduction and adoption of the North American Charging Standard.
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