Rivian (RIVN) will report fourth-quarter earnings Thursday after the market closes. Though the EV maker aggressively minimize prices final yr, a provide scarcity derailed some momentum. Rivian nonetheless stands by its aim of reaching its first constructive gross revenue in This autumn. Right here’s what to anticipate from the report.
Rivian expects a constructive gross revenue in This autumn 2024 earnings
Rivian beat expectations with 14,183 automobiles delivered within the ultimate three months of 2024, bringing the annual complete to 51,579.
Though it was sufficient for Rivian to satisfy its full-year steering of fifty,500 and 52,000, it was solely barely greater than the 50,122 the corporate delivered in 2023.
After a provide scarcity started within the third quarter, Rivian minimize its full-year manufacturing goal to 47,000 to 49,000 automobiles in 2024, down from 57,000. Rivian topped its (revised) goal with 49,476 items produced at its Regular, IL plant final yr.
Rivian’s deliveries and manufacturing embody the R1S, R1T, and electrical supply and business vans. Regardless of the slower-than-expected progress final yr, the corporate nonetheless expects income to enhance.
Final month, the EV maker confirmed that “The beforehand mentioned scarcity of a shared element on the R1 and RCV platforms is now not a constraint” on manufacturing.
| Q1 2024 | Q2 2024 | Q3 2024 | This autumn 2024 | Full-12 months 2024 | 2024 steering | |
| Deliveries | 13,588 | 13,790 | 10,018 | 14,183 | 51,579 | 50,500 – 52,000 |
| Manufacturing | 13,980 | 9,612 | 13,157 | 12,727 | 49,476 | 47,000 – 49,000 |
Rivian additionally mentioned it’s nonetheless on monitor to publish its first constructive gross revenue in This autumn. CFO Claire McDonough instructed analysts on the corporate’s third-quarter earnings name that Rivian expects “a modest gross revenue” within the ultimate three months of 2024.
Nevertheless, McDonough clarified that regulatory credit score gross sales, decrease prices due to plant upgrades and improved provide contracts, and different income outdoors automobile gross sales would primarily drive the achievement.
| Q3 ’22 | This autumn ’22 | Q1 ’23 | Q2 ’23 | Q3 ’23 | This autumn ’23 | Q1 ’24 | Q2 ’24 | Q3 ’24 | |
| Rivian loss per automobile | $139,277 | $124,162 | $67,329 | $32,594 | $30,500 | $43,372 | $38,784 | $32,705 | $39,130 |
Rivian’s web loss fell to $1.1 billion within the third quarter, with a gross revenue lack of $392 million. Though the corporate misplaced round $39,000 on every automobile delivered within the third quarter, this can be a drastic enchancment from 2022, when Rivian misplaced over $139,000 per unit.
Together with a $1 billion convertible be aware from Volkswagen, Rivian ended the third quarter with $6.7 billion in money and equivalents.
In accordance with Estimize, Wall St expects Rivian to publish This autumn income of $1.4 billion, up from $1.3 billion in This autumn 2023, and a lack of 0.68 per share (EPS) in comparison with a lack of $1.36 per share.
Prepping for R2
After launching its new three way partnership with VW, Scaringe mentioned the partnership was a “significant monetary alternative” value as much as $5.8 billion.
In accordance with Rivian’s Chief Software program Officer, Wassym Bensaid, different OEMs at the moment are “knocking on our door” about comparable provide offers for EV tech and software program.
Rivian’s greatest progress driver continues to be but to come back. The corporate is making ready to launch its mid-size electrical SUV, the R2, early subsequent yr. It’ll initially be constructed at Rivian’s Regular, IL facility, however manufacturing is anticipated to considerably increase with plans to open a second plant in Georgia.
The R2 will begin at round $45,000, or almost half the price of the present R1T ($71,700) and R1S ($77,700). Rivian will even construct a smaller, extra inexpensive R3 crossover and high-performance R3X on the Georgia facility.
Rivian plans to construct the plant in two levels, every including 200,000 items of annual manufacturing capability. Rivian says the R2 and R3 are “important drivers within the firm’s long-term progress and profitability.”
Though Rivian secured a $6.6 billion federal mortgage for the brand new EV plant simply earlier than Trump took workplace, the funding is now in jeopardy after the Administration introduced plans to freeze federal loans.
Georgia Gov Brian Kemp instructed Channel 2 information this week that Rivian “secured that mortgage on the tail finish of the Biden administration and, , I feel there’s no secret that the Trump administration is having a look in any respect these issues.” He added, “So I don’t actually know the place that stands proper now.”
Rivian is assured the funds can be there subsequent yr after they go to attract them. A spokesperson mentioned, “We’re working laborious to onshore US manufacturing, offering hundreds of American jobs right here in Georgia.”
Rivian’s inventory is up since reporting third-quarter earnings in November. Nevertheless, RIVN shares are nonetheless down 12% over the previous 12 months and 90% from their all-time excessive shortly after going public in November 2021.
Test again tomorrow after the market closes for a full breakdown of Rivian’s This autumn 2024 earnings report.
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