Rivian Narrows Loss While Rolling Out Cheaper EV Models

Rivian Automotive Inc. has reported a second-quarter adjusted EBITDA loss of $379 million, which is better than analysts’ expectations of a $548 million deficit. The company’s revenue was $1.66 billion, exceeding estimates of $1.52 billion. Rivian has attributed the improved results to regulatory-credit revenue and higher deliveries, particularly with the launch of its lower-cost R2 SUV. The R2 line has a target price of around $45,000, with initial variants costing around $58,000. Rivian plans to bring the price down going forward. The company has reaffirmed its plans to produce 65,000 to 70,000 vehicles this year and expects R2 deliveries to accelerate in the second half. Rivian’s CEO, RJ Scaringe, stated that the company is being thoughtful about ramping up its supply chain as it scales up R2 production. The company aims to add a second production shift later this year and is working to rein in costs and revamp production. Rivian’s shares rose 2.6% in after-hours trading in New York, following the release of the earnings report. The company has been seeking stability this year after a tumultuous stretch marked by heavy costs, supply chain challenges, and lukewarm EV demand in the US. Rivian has had multiple rounds of job cuts, including in June, as part of its effort to get a handle on costs. The company has also benefited from funding through strategic partners, including Volkswagen, which is expected to invest up to $5.8 billion over several years, and Uber Technologies Inc., which announced in March that it would invest as much as $1.25 billion through 2031.