By WMBD-TV
NORMAL – Confident on the outlook for the rest of the year, the electric vehicle manufacturer and dealer, Rivian, released it’s 1st quarter financial report for 2024.
Rivian reported a net revenue of $1.2 billion primarily driven by the delivery of 13,588 vehicles in the first three months of 2024.
However, their gross profit was negative $527 million, compared to 2023’s negative gross profit of $535 million. Comparing to a negative gross profit of approximately $9,300 per vehicle sold.
Rivian reported in their webcast that they believe the negative gross profit comes from a few thousand vehicles being built, but not counted in inventory due to waiting on parts. Stating they will be counted in Q2. Making them expect to reduce gross inventory balance by 20% over the next 18 months.
They did not report regulatory credits due to no “meaningful” increase, but they do expect to see an increase around the middle of the year.
Announcing the production of their R2 vehicle in Normal, they will also be receiving $100 million in cash proceeds from the state of Illinois to fund the retooling update to the R1 line. Integrating almost 600 new or modified robots, they expect the R1 line’s efficiency to increase by 30%.
Reporting an annual production of 215,000 units in the Normal plant, including 155,000 units of R2, they say the expected savings looks better than their original forecast, sitting at $2.25 billion in savings.
Expecting to grow their community in Normal, and continue to work in Illinois, they’ve announced their incentive package from the state of Illinios of up to $827 million.
Rivian stated they had 28,000 test drives of vehicles in Q1 alone, putting people in the driver’s seat became their biggest seller, causing them to believe throughout the rest of the year, delivery of vehicles will grow.
Announcing their new R1S leasing program, increasing the number of states to offer the program, giving Rivian a positive outlook on sales for the rest of 2024.
Continuing, they have negotiated with suppliers to ensure cost reduction, especially on the material cost for the R1, driving their estimations for their gross target in Q4.
Partnering with Amazon, they reveal that by launching the commercial vehicle side of their business, Amazon accounts for the vast majority of their commercial sales, stating Amazon is a close partner.
