Rivian lost $1.45 billion in the first quarter, showing that recent company-wide cost-cutting measures have a ways to go before it can approach profitability.
The electric vehicle maker generated revenue of $1.2 billion in the period, just short of its record from the previous quarter, according to first quarter earnings report which was released on Tuesday after the markets closed. That’s slightly more than the $1.16 billion analysts at Yahoo Finance were expecting. Rivian’s revenue rose 82% from the $661 million it generated in the first quarter of 2023.
However, this was not enough to initially reassure shareholders. Rivian shares fell more than 4% in after-hours trading.
Some cost reduction is on the horizon.
Rivian recently completed a week-long shutdown at its Illinois plant, where it rebuilt and changed parts of its manufacturing process. These upgrades should lower production costs and speed them up, according to the company. Rivian said it has incorporated “nearly 600 new or modified robots” that will make existing production lines “work more efficiently.”
The company’s decision earlier this year to shift production of its next-generation SUV, the R2, away from a planned plant in Georgia to its existing facility in Illinois is also paying off. Rivian previously said it would save $2.25 billion by making the move, which will bring R2 production online sooner.
In its first-quarter earnings report, Rivian said it now expects to “be able to significantly reduce the capital expenditures required to bring R2 to market.” The company lowered its capital spending guidance to $1.2 billion, a decrease of $550 million. These savings do not include the recent $827 million incentive package Rivian received from the state of Illinois.
Rivian is also looking at other revenue opportunities beyond selling EVs. The company plans to open up its charging network, called the Rivian Adventure Network, to other EVs as well. The company said the Rivian Adventure Network could become a “profit center over time.” Opening the grid also makes Rivian eligible for federal funding from the Bipartisan Infrastructure Act, the company noted in the letter to shareholders.
The first-quarter revenue figure, while up year-over-year, reflected a somewhat tepid sales quarter. The company reported in April that it produced 13,980 vehicles and delivered 13,588 of them in the first quarter of 2024. Both of those figures are down from the fourth quarter of 2023, when it built 17,541 and shipped 13,972.
Rivian confirmed on Tuesday that it plans to build about the same number of electric vehicles as in 2023.
Rivian had an eventful first quarter that included an impressive unveiling of its future R2 and R3 EV lineup, as well as more belt-tightening and layoffs. In February, Rivian laid off 10% of its workforce as the EV startup tried to cut costs. This was the third round of layoffs for the EV company since July 2022, when Rivian cut 6% of its workforce. The company cut another 6% of jobs in February 2023.
