NORMAL (25News Now) – Electric vehicle maker Rivian still expects to make a modest profit by the end of this year even as it continues to lose money.
The company released its second quarter results Tuesday, reporting a second quarter net loss of almost $1.46 billion or $1.46 per share for the three-month period ending June 30. That’s a deeper loss than the nearly $1.2 billion, or $1.27 per share in the second quarter of last year.
Rivian said year-over-year gross profit losses are due in part to downtime at the plant in Normal when the company closed the assembly lines in April for retooling.
In a letter to shareholders, Rivian said the introduction of the second generation R1 vehicles and its expected $5 billion partnership with Volkswagen will “fundamentally improve Rivian’s long-term profit trajectory and growth profile.”
“The key drivers of our path to positive gross profit include reducing material costs, conversion costs, and depreciation expenses, as well as increasing our revenues per delivered unit,” Rivian told its shareholders.
Rivian reported $1.158 billion in total revenue in the second quarter, primarily driven by the delivery of 13,790 EVs. Rivian said it made 9,612 vehicles in Normal during the quarter.
“As expected, production was impacted by plant downtime associated with the retooling upgrade. As a result, deliveries exceeded production as we significantly reduced inventory of our first generation R1 trucks and SUVs,” the company said.
Rivian said it’s still on track to make 57,000 EVs in Normal this year.
Rivian’s second quarter results came after the close of the regular trading day on Wall Street.
In afterhours trading, Rivian’s stock price was down 4.26% to $14.17 per share. Its stock is down about 30% this year and about 89% since its much-publicized initial public offering in November 2021.
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