Rivian (RIVN) released its first-quarter earnings Tuesday as the EV maker looks to build upon its momentum from last year. Despite a slow start to 2023, Rivian says it still expects to produce 50,000 vehicles this year.
Rivian Q1 2023 earnings preview
After producing 9,395 vehicles and delivering 7,946 total units in the first three months of the year, Rivian says it remains on track to hit its 50,000 production goal by the end of the year.
Rivian warned of lower production and deliveries as it retools its EDV assembly line to add its new in-house “Endoru” drive units.
Despite the slow start, the EV maker says the new drive units will help streamline production and bring down costs. The company says it’s preparing to ramp output later in the year.
Wall Street is expecting Rivian to post a slightly smaller loss than the $1.7 billion recorded in the fourth quarter as it works to reduce operating costs and enhance efficiency.
With production falling, Wall Street is looking for slight revenue growth in Q1 2023 ($686 million) compared to $660 million its fourth-quarter earnings.
More importantly, with other EV startups including, Fisker and Nikola, cutting production guidance this week after Q1 earnings, Rivian’s guidance and expectations going forward will be something to watch closely.
Rivian first quarter financial results and highlights
After market close, Rivian posted its Q1 earnings results showing narrowing losses but also lower revenue.
Rivian posted revenue of $661 million in the quarter from the 7,946 vehicle deliveries, slightly beating expectations and falling from Q4. Gross profits fell to negative $535 million in Q1, compared to negative $502 million last year.
With cost-cutting measures in place, Rivian’s operating expenses fell to $898 million, compared to over $1 billion during the same period last year.
Rivian says the scheduled commercial van line down time impacted cost of good sold.
Although gross margins did improve, it’s still costing Rivian roughly twice as much to make it than what they are selling for. Rivian did note it expects to reach positive gross profit by the end of 2024.
Overall Rivian posted a net loss of $1.4 billion, down when compared to $1.6 billion in Q1 2022 and over $1.7 billion from last quarter. Rivian burned through $1.5 billion in cash in the quarter, leaving the EV maker with $11.78 billion in cash and equivalents.
Looking ahead, Rivian is maintaining its 50,000 EV production goal for 2023. The EV maker says it remains focused on ramping production and implementing new technology to drive down costs throughout the year.
The team believes supply chain issues will continue to be the limiting factor so it’s working to introduce new engineering design changes and key technologies, which will be implemented in the second half of the year.
We’ll update you with the latest from Rivian’s Q1 earnings call that follows. You can refresh for the latest news.
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Executives from TravelCenters America (TA) and BP were joined by local elected officials at a ribbon cutting for the two companies’ first DC fast charging hub on I-95 in Jacksonville, Florida – the first of several such EV charging stations to come online.
Frequent road-trippers are no doubt familiar with TA’s red, white, and blue logo and probably think of the sites as safe, convenient stops in otherwise unfamiliar surroundings. The company hopes those positive associations will carry over as its customers continue to switch from gas to electric at a record pace in 2025 and beyond.
“Today marks a significant milestone in our journey to bring new forms of energy to our customers as we support their changing mobility needs, while leveraging the best of bp and TA,” explains Debi Boffa, CEO of TravelCenters of America. Boffa, however, was quick to – but TA is quick to point out that TA isn’ no’t leaving its ICE customers behind. “While this is significant, to our loyal customers and guests, rest assured TA will continue to provide the same safe and reliable fueling options it has offered for over 50 years, regardless of the type of fuel.”
The charging hub along the I-95 offers 12 DC fast charging ports offering up to 400kW of power for lickety-quick charging. While they’re at the TA, EV drivers can visit restrooms, shop at TA’s convenience store, or eat at fast food chains like Popeyes and Subway. Other TA centers offer wifi and pet-friendly amenities as well – making them ideal partners for BP as the two companies builds out their charging networks.
“As we expand our EV charging network in the US, I am thrilled to unveil our first of many hubs at TA locations,” offers Sujay Sharma, CEO of BP Pulse Americas. “These sites are strategically located across key highway corridors that provide our customers with en route charging when and where they need it most, while offering convenient amenities, like restaurants and restrooms.”
The new e2500-THL and TS electric Ultra Buggies from Toro offer construction and demo crews a carrying capacity of 2500 lbs. (on the TS model), six-and-a-half foot dump height (on the THL), nearly 13 cubic ft. of capacity, and hours of quiet, fume-free operation.
For their open-mindedness, those crews will be rewarded with machines powered by 7 kWh’s worth of Toro HyperCell lithium-ion battery. That’s good enough for up to eight hours of continuous operation, according to Toro – enough for two typical working shifts.
And, thanks to the Toro Ultra Buggies’ narrow, 31.5″ width, they can easily navigate man doors on inside jobs, as well, making them ideal for indoor demolition and construction jobs. A zero-turn radius and auto-return dump mechanism that ensures the tub automatically returns to the proper resting position make things easy for the operator, too.
Toro says that each of its small (for Toro) e2500 Ultra Buggy units can replace as many as five wheelbarrows on a given job site. Pricing is expected to start at about $32,000.
GM has deployed three of its HYDROTEC hydrogen gensets to the Los Angeles area as a way to help generate power for EV drivers and emergency vehicles recovering from the devastating effects of the recent wildfires.
“GM is extending targeted local support to our customers and employees who have been impacted by the California wildfires,” said Duncan Aldred, vice president global commercial growth strategies and operations. “We’re finding ways to help get people back on the road and using our resources to make a difference in the recovery in the weeks and months to come.”
The mobile charging station rollout is part of a broader response to the fires from GM that includes “planned” philanthropic contributions to nonprofits serving affected communities, employee giving campaigns to benefit the American Red Cross Los Angeles region and the California Fire Foundation, and a complimentary subscription to Crisis Assist Services, which enables customers with OnStar-equipped vehicles to get information about the fires, receive routing guidance, and access immediate emergency assistance from an OnStar advisor.
GM also says it’s providing customers with damaged or destroyed GM vehicles assistance toward the purchase or lease of a new GM vehicle, subject to certain terms and conditions, which may include certain qualifications and restrictions. The company will also help cover collision repair deductible costs for damage to GM vehicles incurred from the wildfires – again, subject to certain qualifications and restrictions.
Electrek’s Take
While it’s certainly commendable for GM to take steps in an effort to support wildfire victims, it feels like a company that made more than $19 billion in gross profits in 2023 (and over $20 billion in 2022; 2024 numbers aren’t out yet – but the company did well enough to spend more than $6 billion buying back its own stock) could have done better than announcing “planned” donations and asking its employees to pony up. By my math, GM shareholders could have given each of the 163,000 global employees the company had in 2023 a $36,000 one-time bonus in lieu of those stock buybacks.
That said, how many companies are doing nothing at all? Good on GM for trying, then – here’s hoping others step up, too.