Rivian (NASDAQ:RIVN) stock is dipping lower after the pure-play electric vehicle (EV) company reported first-quarter earnings. During the quarter, revenue tallied in at $1.204 billion, up by 82% year-over-year (YOY) and beating the analyst estimate for $1.17 billion. Meanwhile, EPS, a measure of profitability, tallied in at a loss of $1.48 compared to the analyst estimate for a loss of $1.15.
“We hit several milestones this quarter, including producing our 100,000th vehicle in Normal, successfully navigating the retooling upgrade, and unveiling our new midsize platform, which underpins the R2, R3, and R3X,” said CEO RJ Scaringe.
Rivian produced 13,980 vehicles and delivered 13,588 of them during Q1. While shareholders were hoping for an increase above the previously given production guidance of 57,000 vehicles, Rivian instead reiterated the figure. That brings concerns, as it implies no growth over the company’s 2023 production of 57,232 vehicles. The guidance also implies production of 14,340 vehicles each quarter for the remainder of the year.
RIVN Stock: Rivian Reiterates 2024 Production of 57,000 Vehicles
Rivian noted several accomplishments during the quarter, such as $2.25 billion in savings from switching R2 production to Normal, Illinois and optimizing its R1 production line. R2 production is expected to start during the first half of 2026 and was initially set to begin at a $5 billion plant in Georgia. Construction at the plant has been halted.
Meanwhile, profitability is still far away. Gross profit per vehicle was a loss of $38,784, meaning that Rivian lost that much for each vehicle delivered. Its worth noting that the figure includes $15,455 of depreciation and $1,693 of stock-based compensation (SBC). Analysts don’t expect the company to report its first year of GAAP EPS profitability until 2029, when it is forecast to be 1 cent.
Rivian’s no-growth production forecast comes at a time when many consumers are favoring hybrids over EVs. This is attributed to the premium price tag associated with EVs. According to Cars.com, the average price of hybrids and plug-in hybrid vehicles is $48,918 while the average price of an all-battery EV is $63,802. Rivian’s 2024 R1T is currently its most affordable vehicle with a starting price of $71,700. Its R2 is expected to start at around $45,000.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
