By posting sturdy Q2 earnings, EV maker Rivian is elevating guidance numbers for the year. The company keep boosting production while gross margins increased by 50%. It shows solid progress quarter over quarter.
Rivian Q2 2023 earnings
Rivian overcomes expectations by delivering 12,640 EVs in the second quarter, the number is up by 50% from Q1. On the other hand, industry experts were assumed to be around 11,000. Initiate slow at the start of the year, while gradually picking up after retooling its EDV line to accommodate its new Enduro drive units and LFP battery packs. With the EDV line, the company accomplishes to minimize the input cost by approx 25%.
At the same time, the automaker posted a net loss of $1.4 billion in the first quarter. The same is down from $1.7 billion in Q4.
Rivian Q2 earnings outcome
Talking about the second quarter, Rivian successfully generated $1.12 billion in revenue. This is up from $661,000 in Q1, by doing 12,640 vehicle deliveries. The biggest outcome is Rivians blossoms quarter over quarter. Additionally, its production and deliveries were grown by 50% and 60%, respectively.
The most essential factor is company’s gross profit per vehicle delivered has been improved by $35,000. According to Rivian, its company-wide cost transformation program, the same plays the key factor for healthy reductions in both R1 and EDV vehicle costs.
Also, the Gross margins raised by 50% in Q2, with ($32,595) gross profit per unit delivered. This is as compared to ($67,329) in the first quarter and ($124,162) in Q4 respectively. The automaker statement on the improvement, says:
We remain confident in our ability to continue to drive our cost per vehicle lower by ramping production and leveraging our fixed costs, as well as our commercial, engineering design changes, and operational cost reduction efforts
Rivian CEO RJ Scaringe remarked on the company’s Q2 earnings progress, saying:
Our second quarter results reflect our continued focus on cost efficiency as we accelerate the drive toward profitability. On a quarter-over-quarter basis, delivered vehicles grew around 60% while gross profit per vehicle improved by about $35,000. We have achieved meaningful reductions in both R1 and EDV vehicle unit cost across the key components, including material costs, overhead and logistics. It was a strong quarter, and we remain focused on ramping production, driving cost efficiencies, developing future technologies, and enhancing the customer experience.
