EV maker Rivian (RIVN) is set to release its second-quarter 2023 earnings after the bell on Tuesday, August 8. Amid of wave of EV price cuts and lowered guidance, investors will be watching production and pricing closely in Rivian’s Q2 earnings report.
Rivian Q2 2023 earnings preview
Rivian shattered analyst expectations after delivering 12,640 models in the second quarter. Analysts were looking for the EV maker to deliver around 11,000.
After a slow start to the year, production is also picking up. Rivian made nearly 14,000 EVs during the period, an increase of 48% from around 9,400 in Q1.
Rivian warned it would start slowly as it retooled its electric delivery vehicle (EDV) assembly line to add its in-house Enduro drive units and LFP battery packs. The new drive units and batteries will help streamline production while cutting costs.
According to Rivian, the new in-house components have helped reduce input costs on its EDVs by roughly 25%.
The new drive units have begun making their way into the R1 models, with the cheaper “Dual Motor” and “Dual Motor Performance” versions appearing in the R1T and R1S configurator last month.
Rivian dual motor R1T (Source: Rivian)
Production and pricing
Rivian was among the few EV makers to stick to its annual production guidance so far this year of building 50,000 EVs, which would more than double last year’s figures (24,337 EVs produced in 2022). This will be a number to watch closely if Rivian maintains or not.
Several Rivian executives, including CEO RJ Scaringe and CFO Claire McDonough, claimed the EV maker hit a turning point in Q2 regarding supply chain hurdles. Scaringe said in an interview in early July:
What we saw in Q2 was the beginnings of the supply chain really running in a healthy way.
Meanwhile, Rivian will face rising competition, with Ford slashing prices on its F-150 Lightning electric truck and R1T competitor by up to $10K last month. Rivian will get a new competitor with Tesla’s Cybertruck, which is expected to begin delivering by the end of next month.
Will Rivian follow the trend and adjust prices? The R1T starts at around $73K, and the R1S begins at around $78K. Ford’s Lightning now starts under $50K. Given they are two different vehicles, they both compete in the electric pickup market. Lucid was the latest to cut prices, announcing up to $12K off its Air luxury electric sedans.
Rivian Q1 2023 earnings (Source: Rivian)
At the same time, Rivian is facing financial pressures of its own. Although gross margins improved in the first quarter amid cost-cutting measures, the EV maker is still losing about twice as much as it takes to make the vehicles.
Rivian one-year stock chart (Source: TradingView)
Rivian posted a net loss of $1.4 billion in the first quarter, down from $1.7 billion in Q4. The EV maker ended the quarter with $11.78 billion in cash, equivalents, and restricted cash.
Despite cooling off into earnings, Rivian’s stock is up over 80% since late June. However, share prices are still down over 80% from their highs set shortly after going public in November 2021.
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What a headline and what a future evolving before our eyes. Chinese battery expert EVE Energy inaugurated a new production base yesterday, and to celebrate the feat, rolled one of its new all-solid-state batteries off the production line.
EVE Energy Co., Ltd. is a Chinese battery manufacturer approaching 25 years in the industry. It develops, manufactures, and delivers lithium-ion batteries and energy storage systems to OEMs around the world.
The company’s current production footprint includes facilities in at least four regions of China, in addition to a plant in Malaysia and Hungary. In 2021, EVE shared plans to erect a new lithium-ion battery research and development center and manufacturing plant in Chengdu, in the Sichuan region of southwest China.
Since then, EVE Energy has made impressive strides beyond traditional lithium-ion cells and into highly coveted all-solid-state technology. Yesterday, EVE Energy officially opened its new solid-state battery production base in Chengdu and even produced one of its new “Longquan II” cells (pictured above).
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Source: EVE Energy
EVE to build 500k solid-state cells per year in Chengdu
EVE Energy shared details of yesterday’s solid-state production base inauguration in a release today. The new 11,000-square-meter (118,400-square-foot) facility in Chengdu is officially open, but will continue development and expansion through 2026.
As initially announced in 2021, EVE Energy’s Chengdu facility will be constructed in two phases – the first of which is expected to be completed in December. Phase one will offer the capacity to manufacture 60-Ah batteries and EVE’s “Longquan II” solid-state cells – the first of which rolled off the production line yesterday.
The Longquan II is a 10-Ah all-solid-state cell with an energy density of up to 300 Wh/kg. Per EVE Energy, mass production of these ultra-dense cells will eventually power humanoid robots, uncrewed aerial vehicles, and AI equipment.
At its new Chengdu base, EVE has already vowed to fully commit funding, equipment, and R&D resources to achieve an energy density of 400 Wh/kg by 2025. The company also stated that this week’s production launch of the Longquan series “marks a crucial step forward for Eve Energy in solid-state battery industrialization.”
Following phase one’s completion by year’s end, EVE said phase two will bolster the facility’s annual production capacity to 500,000 cells, equating to 100 MWh by December 2026.
There was no mention of any specific solid-state cells developed for electric vehicles. Still, EVE Energy is inching toward mass production of the technology while producing higher energy densities to support automotive OEMs, perhaps one day.
Last year, Zhao Ruirui, executive vice president of EVE Energy’s research institute, shared plans to launch all-solid-state batteries for Chinese passenger cars in 2026, beginning with hybrid EVs.
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It’s official. Volkswagen is shaking up its EV naming strategy. After confirming the ID.2 will launch as the ID.Polo, Volkswagen promises its new family of entry-level EVs “will make electric driving more affordable than ever.” The ID.Polo is just the start with an electric T-Cross and much more coming soon.
Meet the Volkswagen ID.Polo
Volkswagen is reviving some of its most popular nameplates for its next-generation electric vehicles. Starting with the ID.Polo next year, Volkswagen will begin transferring names from ICE models to its new family of EVs.
The all-electric ID.Polo “is just the beginning,” according to Thomas Schäfer, VW brand CEO. As the production version of the ID.2all concept from 2023, the 25,000 euro ($29,000) entry-level electric car, the Polo EV, is expected to be a cornerstone of Volkswagen’s electrification strategy.
“A model like the Polo shows just how powerful a name can be,” Martin Sanders, Volkswagen’s sales boss, said, adding, “it stands for reliability, personality and history.”
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The ID.Polo is just the start. Volkswagen has several new affordable EVs on the way, including the ID.Cross, an electric counterpart to the T-Cross.
Volkswagen said its new family of EVs marks the beginning of a new era, promising to make electric driving more affordable than ever.
The ID.Polo will evolve into an electric hot hatch, featuring a sporty GTI variant. Sanders said the ID.GTI Concept will go into production as the ID. Polo GTI, which is also launching next year. It will offer “outstanding dynamics and plenty of driving pleasure,” Sanders ensured.
Volkswagen ID.Polo and ID.Polo GTI (Source: Volkswagen)
Volkswagen will showcase the ID.Polo and ID.Polo GTI for the first time at the Munich Motor Show, starting on September 8.
The day before, September 7, Volkswagen will unveil the ID.Cross concept. It’s also slated to arrive in 2026 as the electric counterpart to its best-selling T-Cross SUV.
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Segway just smashed the accelerator pedal on youth motorsports, teaming up with indoor karting giant K1 Speed in a new partnership that blends electric micromobility with high-octane (high-electron?) thrills and fun.
The collaboration will see Segway become the official sponsor of K1’s Junior and Teen Challenge GP leagues, while also putting Segway’s high-performance scooters and go-karts directly in front of the next generation of electric racing fans.
Segway will serve as the official sponsor of K1 Speed’s Junior and Teen Challenge GP leagues, a racing series that pits the best young go-kart racers against each other at K1 tracks across the country. Winners will even take home some fun prizes like the Segway GoKart Pro 2.
“Segway’s partnership with K1 Speed perfectly reflects our passion for performance, innovation, and inspiring the next generation of riders,” said Alex Connelly, head of emerging business development at Segway. “By bringing our products directly to K1 fans and powering the Junior and Teen Challenge GP leagues, we’re creating opportunities for more people to experience even more everyday thrills!”
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K1 Speed operates over 100 locations across 30 states and 10 countries, all using fully electric go-karts, making this partnership a perfect alignment in both spirit and tech. “Segway’s incredible reputation as a front-runner in electric mobility aligns perfectly with our use of fully electric go-karts,” said K1 co-founder Susan Danglard.
The partnership also brings more access to Segway’s other micromobility products, such as their range of electric scooters that cover everything from commuting to high-performance riding. Segway’s most exciting electric vehicles, including the Max G3 e-scooter, F3 commuter scooter, GT3 performance scooter, and the GoKart Pro 2, are now available for purchase directly from K1’s website. That last one might be the most fun of all: the GoKart Pro 2 is a 3-in-1 electric vehicle that hits speeds of up to 27 mph (43 km/h), transforms into a self-balancing scooter, and even doubles as a racing simulator controller for PC gaming.
Oh, and yes… it’s designed for both kids and adults. So parents, don’t pretend you’re buying one just for the kids.
Electrek’s Take
We’ve seen branding deals before that are just that… all about branding. But this feels like much more than just a cross-promo play. It’s a real look at how electric mobility brands can build cultural relevance with young riders early – and maybe even help grow the next generation of e-racing pros while they’re at it.
By getting kids and teens into EVs, without the focus being on the EV itself, it helps cement the idea that these aren’t some new alternatives… they’re just the best way to build transportation devices, whether it’s for commuting, adventuring, or just plain fun racing!
K1’s electric karts are a bit faster than Segway’s, but they’re also built to be abused all day, every day. That Segway kart looks pretty fun for a personal option!
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