Rivian Automotive, Inc. (NASDAQ: RIVN) today announced its second quarter 2024 financial results, reaffirming all aspects of guidance for the year. During the second quarter, the company made significant progress driving greater cost efficiency, improving its products, further strengthening its balance sheet, validating the differentiated nature of its technology stack, and establishing new business opportunities. Execution during the quarter was strong with the completion of the retooling upgrade at the company’s plant in Normal, IL. As previously reported, the company produced 9,612 vehicles and delivered 13,790.

In June, Rivian and Volkswagen Group announced their intention to form an equally controlled and owned joint venture (JV) to create next-generation electrical architecture and best-in-class software technology. The partnership is anticipated to accelerate the development of software for Rivian and Volkswagen Group. It is planned to allow both companies to combine their complementary strengths and lower cost per vehicle by increasing scale and speeding up innovation globally. Rivian’s proven in-market zonal hardware design and integrated technology platform will serve as the foundation for future software development in the JV that will be applied to both companies’ electric vehicles. As part of the deal, Volkswagen Group has invested an initial $1 billion in Rivian, with $4 billion in planned additional investment, for a total expected deal size of $5 billion.

RJ Scaringe, Rivian Founder and CEO said:

“The second quarter has been a defining one for Rivian. We have demonstrated strong execution during the quarter with the plant retooling upgrade and launch of second generation R1 vehicles. The changes we made to the R1 platform have allowed us to reduce material and manufacturing costs, while simultaneously improving performance and capabilities. As a testament to our industry-leading technology stack, we also recently announced our proposed JV with Volkswagen Group. The technical workstreams to prepare the integration of Rivian electrical architecture and software technology stack into Volkswagen Group products are moving along very well, and we expect to close the joint venture in the fourth quarter of this year. The output from our joint venture will see Rivian’s technology in vehicles all around the world, helping to create more consumer choice and speed up the transition away from fossil fuels.”

During the second quarter, the company introduced and started deliveries of the second generation R1 vehicles. The new R1 includes hundreds of design, engineering, and performance upgrades. These upgrades were made while also realizing significant improvements throughout the vehicle, positioning the platform for long-term profitability. Rivian also introduced two new in-house motor configurations; the Tri-Motor and the Quad-Motor. All motors on Rivian vehicles are now designed, engineered, and manufactured fully in-house. When compared against Rivian’s first generation outsourced Quad-Motor system, the new Ascent Quad and Tri-Motor configurations are significantly lower in cost, quicker, and provide superior range.

Financial Highlights:

Revenues:

Total revenues for the second quarter of 2024 were $1,158 million, primarily driven by the delivery of 13,790 vehicles. Total revenues from the sale of regulatory credits were $17 million for the quarter.

Gross Profit:

Rivian generated negative gross profit of $(451) million for the second quarter of 2024 as compared to $(412) million for the second quarter of 2023.

Cost of revenues for the second quarter of 2024 included $59 million, or approximately $4,278 per vehicle delivered in the quarter, of costs we do not anticipate being part of our long-term cost structure. This was made up of $33 million of cost of revenue efficiency initiatives primarily related to certain supplier liabilities incurred and $26 million of accelerated depreciation associated with the updates made to our Normal Factory during the plant retooling upgrade.

Operating Expenses and Operating Loss:

Total operating expenses in the second quarter of 2024 grew to $924 million, as compared to $873 million in the same period last year.

In the second quarter of 2024, the company recognized a non-cash, stock-based compensation expense within operating expenses of $177 million as compared to $158 million in the second quarter of 2023 and depreciation and amortization expense within operating expenses of $71 million as compared to $63 million in the second quarter of 2023.

Fair Value Loss on Convertible Note, Net

Fair value loss on convertible note, net reflects the issuance and subsequent mark-to-market valuation of the unsecured convertible note issued to Volkswagen International America, Inc. in the second quarter of 2024.

Net Loss:

Rivian’s net loss for the second quarter of 2024 was $(1,457) million as compared to $(1,195) million for the same period last year.

Adjusted EBITDA (non-GAAP)*

Adjusted EBITDA* for the second quarter of 2024 was $(860) million as compared to $(861) million for the same period last year.

Capital Expenditures:

Capital expenditures for the second quarter of 2024 were $283 million, as compared to $255 million for the same period last year.

Liquidity:

Rivian ended the second quarter of 2024 with $7,867 million in cash, cash equivalents, and short-term investments. Including the capacity under its asset-based revolving-credit facility, the company ended the second quarter of 2024 with $9,179 million of total liquidity.

The second quarter of 2024’s ending cash, cash equivalents, and short-term investments balance of $7,867 million includes $1 billion of an unsecured convertible note issued to Volkswagen International America, Inc. in association with the announcement of our planned joint venture with Volkswagen Group. The remaining $4 billion of potential incremental investment from Volkswagen Group is subject to the completion of the definitive agreements, the achievement of certain milestones, and the receipt of regulatory approvals.

For further information please see Rivian’s latest shareholder letter at www.rivian.com/investors.

The company will host an audio webcast to discuss its results and provide a business update at 2:00pm PT / 5:00pm ET on Tuesday August 6, 2024. The link to the webcast will be made available on the company’s Investor Relations website at rivian.com/investors. After the call, a replay will be available at rivian.com/investors for four weeks. The letter is available on its investor relations website (https://rivian.com/investors).