Rivian loses $1.45 billion as cost-cutting measures proceed | TechCrunch

Symbol Credit: RivianRivian misplaced $1.45 billion within the first quarter, appearing that its fresh company-wide cost-cutting measures have a long way to move sooner than it may possibly method profitability.
The EV-maker introduced in $1.2 billion in earnings within the length, coming in just below its document haul from the prior quarter, in line with its first-quarter profits document that was once launched Tuesday after markets closed. That’s quite greater than the $1.16 billion anticipated by means of Yahoo Finance analysts. Rivian’s earnings grew 82% from the $661 million it generated within the first quarter in 2023.
Nonetheless, that wasn’t sufficient to first of all assuage shareholders. Rivian’s stocks fell greater than 4% in after-hours buying and selling.
Some cost-cutting reduction is at the horizon.
Rivian not too long ago completed up a weeks-long shutdown on the Illinois manufacturing unit the place it retooled and altered portions of its production procedure. The ones upgrades must decrease the price of manufacturing and velocity it up, in line with the corporate. Rivian stated it built-in “just about 600 new or changed robots” that can make the present manufacturing strains “run extra successfully.”
The corporate’s determination previous this 12 months to shift manufacturing of its next-generation SUV, the R2, clear of a deliberate manufacturing unit in Georgia to its present facility in Illinois, could also be benefiting. Rivian has prior to now stated it could save $2.25 billion by means of making the transfer, which is able to convey R2 manufacturing on-line previous.
In its Q1 profits document, Rivian stated it now expects to “be capable of considerably scale back the capital expenditures required to release R2.” The corporate has decreased its capital expenditures steering to $1.2 billion, a discount of $550 million. The ones financial savings don’t come with the hot $827 million incentives package deal Rivian gained from the state of Illinois.
Rivian could also be having a look at different earnings alternatives past promoting EVs. The corporate plans to open its charging community, which is branded Rivian Journey Community, to different EVs. The corporate stated its Rivian Journey Community can grow to be a “benefit heart through the years.” Opening the community additionally makes Rivian eligible for federal investment from the Bipartisan Infrastructure Regulation, the corporate famous in its letter to shareholders.
The Q1 earnings determine, whilst appearing expansion year-over-year, mirrored a relatively tepid gross sales quarter. The corporate reported in April it produced 13,980 automobiles and delivered 13,588 of them within the first quarter of 2024. Either one of the ones figures are down from the fourth quarter of 2023, the place it constructed 17,541 and shipped 13,972.
Rivian reaffirmed on Tuesday that it plans to make round the similar choice of EVs because it did in 2023.
Rivian had an eventful first quarter that incorporated a splashy expose of its long run R2 and R3 EV lineup in addition to extra belt tightening and layoffs. In February, Rivian laid off 10% of its staff because the EV startup attempted to rein in prices. This was once the 3rd spherical of layoffs for the EV corporation since July 2022, when Rivian minimize 6% of its staff. The corporate minimize every other 6% of jobs in February 2023.

Author: OpenAI