After posting robust Q2 earnings, EV maker Rivian (RIVN) is elevating steerage for the 12 months. Rivian continues ramping manufacturing whereas gross margins improved by 50%. General, it was a stable enchancment quarter-over-quarter.

Rivian Q2 2023 earnings preview

Yesterday we posted a preview of what you possibly can count on from Rivian’s Q2 earnings report, indicating buyers will likely be watching pricing, margins, and steerage after a combined quarter from EV makers.

Rivian crushed expectations, delivering 12,640 EVs within the second quarter, up 50% from Q1. Analysts had been in search of round 11,000. After a sluggish begin to the 12 months, Rivian’s manufacturing is selecting up after retooling its EDV line to accommodate for its new Enduro drive models and LFP battery packs.

After initially introducing the brand new in-house parts into its EDVs, Rivian says it has helped scale back enter prices by round 25%.

The Enduro drive models started making their manner into R1 fashions within the second quarter, with its cheaper “Twin Motor” and “Efficiency Twin Motor” showing within the R1 store final month.

Rivian posted a web lack of $1.4 billion within the first quarter, down from $1.7 billion in This fall, because the EV maker cuts prices. Right here’s a take a look at Rivian’s Q2 2023 earnings highlights.

Rivian Q2 earnings outcomes and highlights

Within the second quarter, Rivian generated $1.12 billion in income, up from $661K in Q1, primarily from the 12.6K automobile deliveries ($34M from regulatory credit).

The largest takeaway is Rivian’s enchancment quarter over quarter. Rivian’s manufacturing and deliveries grew by 50% and 60%, respectively.

Maybe, most significantly, Rivian’s gross revenue per automobile delivered improved by $35,000. Rivian says its company-wide price transformation program is having a most affect with significant reductions in each R1 and EDV automobile prices.

Gross margins improved by 50% in Q2, with ($32,595) gross revenue per unit delivered, in comparison with ($67,329) within the first quarter and ($124,162) in This fall. Rivian commented on the development, saying:

We stay assured in our capacity to proceed to drive our price per automobile decrease by ramping manufacturing and leveraging our mounted prices, in addition to our industrial, engineering design adjustments, and operational price discount efforts

This consists of introducing its new in-house Enduro drive models, LFP battery packs, and negotiated provider worth reductions. As the corporate produces extra automobiles, it’s serving to them higher leverage the plant overhead and manufacturing operations.

Rivian says about 70% of complete R1 manufacturing was the R1S in Q2, within the electrical SUV’s first quarter overtaking the R1T to fulfill the rising backorders.

General, Rivian posted a web lack of $1.12 billion, in comparison with a web lack of $1.7 billion final 12 months and $1.4 billion final quarter.

After the progress made within the second quarter, Rivian is elevating its 2023 manufacturing steerage to 52,000 models, up 2,000 from its earlier goal. Rivian can also be bettering its adj EBITDA steerage to $4.2B whereas decreasing Capex to $1.7B following the enhancements in manufacturing, in-house parts, and provide chain outlook.

Rivian’s CEO RJ Scaringe commented on the corporate’s Q2 earnings progress, saying

Our second quarter outcomes replicate our continued deal with price effectivity as we speed up the drive in direction of profitability. On a quarter-over-quarter foundation, delivered automobiles grew round 60% whereas gross revenue per automobile improved by about $35,000. We’ve got achieved significant reductions in each R1 and EDV automobile unit price throughout the important thing parts, together with materials prices, overhead and logistics. It was a robust quarter, and we stay centered on ramping manufacturing, driving price efficiencies, growing future applied sciences, and enhancing the shopper expertise.

In the meantime, Rivian ended the quarter with $9.2B in money and equivalents, down from $11.78B within the earlier quarter.