Shares of Rivian (NASDAQ:RIVN) stock are in the green by 7.5% after the electric vehicle (EV) company announced its second-quarter production and deliveries.
Rivian produced 9,612 vehicles compared to 13,992 vehicles a year ago, signaling a drop of 31.3%. On the bright side, the company reaffirmed its 2024 production guidance for 57,000 vehicles. Production for 2023 totaled 57,232 vehicles.
Rivian delivered 13,790 vehicles, up by 9.1% compared to 12,640 vehicles year-over-year. Analysts were expecting 12,000 deliveries, meaning that Rivian beat the estimate by a solid 14.9%. This is the company’s largest delivery beat yet.
Rivian has now produced a total of 23,952 vehicles as of June 30 after producing 13,980 vehicles during the first quarter. That means that its production must ramp up to at least 33,048 vehicles during the second half of the year in order to meet the guidance figure.
RIVN Stock: Rivian Announces Second Quarter Production and Delivery Figures
Rivian also announced that it would report its second-quarter earnings on Aug. 6 after the market close. Analysts are forecasting revenue to fall by 9.71% to $1.01 billion. Additionally, the company is expected to remain unprofitable, with a GAAP EPS loss of $1.38.
Profitability is a major goal for any company, and Rivian has taken steps to achieve this by lowering the cost of production.
“Electric-vehicle maker Rivian’s drive to cut costs and turn its first profit has removed over 100 steps from the battery-making process, 52 pieces of equipment from the body shop and over 500 parts from the design of its flagship SUVs and pickups,” wrote Reuters. In addition, Rivian has lowered its Electric Delivery Van (EDV) material costs by 35%.
However, CEO RJ Scaringe noted that most of these cost reductions would not be realized until the third quarter.
Meanwhile, RIVN stock has recently received several price target hikes following the announcement of its up to $5 billion deal with Volkswagen (OTCMKTS:VWAGY). RIVN now has an average price target of $17.93, implying an upside of about 22%. The highest price target is at $36, while the lowest is $10.
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.
