Electric vehicle startup Rivian Automotive released its second quarter 2023 earnings results on August 8, exceeding analyst expectations on revenue, deliveries, and production.
Rivian generated $1.12 billion in revenue in Q2, up significantly from $364 million in the same period last year. This topped analyst estimates of $900 million. The company delivered 12,640 vehicles to customers in the quarter, up from just 920 vehicles in Q1 2023. This also surpassed expectations of around 11,000 deliveries.
Production ramped up as well, with Rivian manufacturing 13,992 vehicles in Q2 compared to 4,401 in Q1. Thanks to the increased scale, Rivian’s gross loss narrowed to $412 million from $704 million a year ago. The net loss totaled $1.2 billion or $1.27 per share.
Rivian ended Q2 with $10.2 billion in cash on hand, down from $11.78 billion on March 31. The company attributed the improved financials to a focus on cost efficiency as it drives toward profitability.
Based on the strong Q2 results, Rivian raised its production guidance for 2023 to 52,000 vehicles, up from the previous target of 50,000.
“Our second-quarter results reflect our continued focus on cost efficiency as we accelerate the drive towards profitability,” said Rivian CEO RJ Scaringe. “We are on track to deliver on our 2023 production guidance and achieve positive gross profit in 2024.”
Rivian’s shares jumped nearly 10% in after-hours trading following the earnings release. Investors welcomed the company’s ability to beat expectations and ramp up production despite wider supply chain challenges.
While Rivian’s production pace has been slower than initially projected, the latest results provide optimism that the electric vehicle maker has turned a corner. With its cash reserves, Rivian appears poised to scale up output and potentially compete with the likes of Tesla and General Motors in the burgeoning EV market.
