Rivian Automotive, a US electric vehicle company, maintained its annual production and profit targets in its latest financial report, while informing investors that one of its factories may shut down for several weeks next year to prepare for the launch of new models.
Rivian is one of the few pure electric vehicle manufacturers in the United States, second only to Tesla in terms of pure electric vehicle production, and once regarded Tesla as its "biggest rival". But in recent years, the company has been facing production issues and the impact of slowing consumer demand for pure electric vehicles.
The company announced on Tuesday (August 6th) that its second quarter revenue was $1.16 billion, with analysts expecting $1.17 billion; The adjusted loss per share for the second fiscal quarter was $1.13, better than analysts' expected loss per share of $1.20; Cash and cash equivalents for the second quarter were $5.76 billion, with analysts expecting $5.64 billion.
In its latest financial report, Rivian expects to produce 57000 electric vehicles in 2024, which is consistent with this year's forecast and roughly the same as production in 2023; The company also maintains an expected annual adjusted pre tax loss of $2.7 billion, with capital expenditures of approximately $1.2 billion, and expects capital expenditures to reach approximately $1.5 billion by 2025.
In addition, the company's CFO Claire McDonough stated that Rivian's factory in Nagel, Illinois will be shut down for several weeks by the end of 2025 for further upgrades in preparation for Rivian's upcoming R2 model debut.
In April of this year, the R1 model assembly line of the factory was closed for three weeks, during which it underwent equipment restructuring and improved efficiency.
McDonough told analysts on a conference call, "We expect the shutdown time at the Nagel factory to not exceed one month, as we will integrate new equipment into the factory before the release of R2 in the first half of 2026
Affected by the latest financial report and expected performance, Rivian's stock price fell 6.96% to $13.77 in after hours trading. As of the close of the US stock market on Tuesday (August 6th), the stock has fallen by 37% this year.
Volkswagen Partner
Earlier this year, Rivian suspended plans to build a new factory in Georgia and announced an important cooperation agreement with Volkswagen in June.
Volkswagen's initial investment in Rivian is $1 billion and will continue to invest $4 billion in the future. In exchange, Volkswagen will acquire the technology from this startup for its own electric vehicles and collaborate with Rivian to develop the next generation of electric vehicles and software.
Volkswagen's cash injection of up to $5 billion is welcome news for the US company's finances, easing concerns that Rivian may run out of cash before launching its latest model.
At the end of last month, this transaction also received "clearance" from the German antitrust agency. The German competition regulator Bundeskartellamt has stated that Volkswagen and Rivian Automotive can establish a joint venture. There is no serious competition issue to worry about in the cooperation between the two.