- Although it operated at a loss in Q1, Rivian believes that it can be profitable in 2024.
- Delaying construction at its second manufacturing plant in Covington, Georgia, will help it save money this year.
- Accelerating production will help it make more revenue.
Georgians may have been a little freaked out by Rivian’s decision to pause construction at its plant in Covington, but that will help it start production of the R2 earlier, and save $2.25 billion this year, allowing it to make a modest profit in 2024, it said in its Q1 earnings report.
Total revenue for the first quarter of 2024 surged to $1.2 billion, marking an 80 percent increase from the previous year’s $661 million, primarily driven by the delivery of 13,588 vehicles, which represents a 71 percent increase compared to the same period last year. Production also rose by 48 percent.
Rivian reports that regulatory credits contributed only a small portion to its total earnings for the quarter. The startup also noted that it ended Q1 with $7.8 billion in cash, cash equivalents, and short-term loans
Read: Rivian Scores $827 Million From Illinois To Build R2 SUV
However, there’s still work to do for the automaker, which experienced an operating loss of $1.45 billion in Q1. However, with fewer expenses related to the R2, and stronger-than-expected delivery numbers in the first quarter, Rivian believes it can claw its way out of the red.
“First-quarter results exceeded our outlook and set a strong foundation for the remainder of the year as we focus on continued demand generation, delivering cost and plant efficiency improvements, advancing R2 development, and driving towards profitability,” said Rivian CEO RJ Scaringe.
Contributing to Rivian’s optimism for the upcoming year is its performance exceeding production forecasts for the first three months of 2024, having completed 13,980 vehicles. Additionally, recent enhancements to its Normal, Illinois plant will enable a 30 percent faster production rate for R1 vehicles.”.
“We hit several milestones this quarter, including producing our 100,000th vehicle in Normal, successfully navigating the retooling upgrade, and unveiling our new midsize platform which underpins the R2, R3, and R3X,” said Scaringe. “It is great to see the incredible support for our brand and upcoming products.”
However, investors did not share Rivian’s optimism, and its share price is down 0.77 percent today. So far this year, its share price is down 51 percent.
