Rivian’s (RIVN) gross margins fall in Q4 2023, EV maker cuts staff, but there’s more to it
Rivian (RIVN) released its Q4 2023 earnings Wednesday, showing gross margin improvements over last year, but the numbers are down sequentially. Rivian also announced it will reduce its workforce by 10%. With cost-cutting measures in place and new affordable products, Rivian expects to achieve modest gross profit by the end of the year.
Fourth quarter earnings preview
After delivering over 50,000 EVs, more than double last year’s delivery numbers, Rivian looks to keep the momentum rolling in 2024.
Despite the growth, Rivian’s pace slowed in Q4 as expected. Rivian’s CFO, Claire Mcdonough, said the company expected “a more significant gap between production and deliveries in Q4.”
The slowdown was due to Amazon limiting its new vehicle intake during the holiday season. Meanwhile, registration data shows Rivian was the fifth best-selling EV brand in the US last year, with 4% of the market.
After introducing new lower-priced R1S and R1T options (now starting at $71,700), analysts are worried about Rivian’s ability to generate a p.rofit
The EV maker reported a net loss of $1.3 billion in the third quarter, with around a $30,500 loss per vehicle. Although still high, that number is down from $139,277 a year ago.
Rivian Q4 2023 earnings results
Rivian generated $1.3 billion in revenue in Q4, primarily from the 13,972 vehicles delivered. For the full-year, Rivian’s revenue reached $4.4 billion, up 167% from 2022.
Rivian’s gross loss of $606 million is an improvement from last year’s $1 billion loss. However, it’s up from -$477M in Q3 and -$412M in Q2 2023. With lowered delivery numbers, higher gross losses were expected.
Gross margins were -46% in the fourth quarter, down from -36% in Q3 and -37% in Q2 2023. That equaled out to a $43,372 loss per vehicle delivered.
| Q3 ’22 | Q4 ’22 | Q1 ’23 | Q2 ’23 | Q3 ’23 | Q4 ’23 | |
| Rivian loss per vehicle | $139,277 | $124,162 | $67,329 | $32,594 | $30,500 | $43,372 |
Although $43K is still a significant amount, it’s an $81K improvement compared to the year before. Following a shutdown in the second quarter, Rivian expects to see further cost reductions.
Overall, Rivian posted a net loss of $1.58 billion in Q4, down from $1.79 billion the year before. For the full-year, Rivian’s net losses totaled $5.4 billion, down from $6.8 billion in 2022.
The EV maker also announced in its 8K Wednesday it will be reducing its salaried workforce by roughly 10%. Rivian CEO RJ Scaringe said on the company’s earnings call the move is to maximize the brand’s ability to make an impact.
Rivian ended the quarter with 9.37 billion in cash and equivalents. The company believes it has enough cash to fund operations through 2025.
A substantial opportunity ahead
Rivian says the “opportunity ahead is substantial” as it focuses on growing the brand. The EV maker will reveal its more affordable R2 electric SUV on March 7.
The company is focusing on driving greater cost efficiency with its R1 and RCV lineup. Rivian’s R1S was the top-selling EV in the US, priced over $70K. A smaller, more affordable version will help expand into new markets.
Rivian expects deliveries to be flat this year with around 57,000 due to the planned shutdown. The EV maker expects deliveries to be 10% to 15% below Q4’s numbers (11.9K to 12.5K)
With new tech and engineering upgrades, Rivian expects to achieve a “modest gross profit” in the fourth quarter of 2024.
The EV maker recently introduced leasing and new standard pack options to expand the brand to new customers. Rivian says it plans to launch new variants and trims this year to attract new markets.
Rivian’s (RIVN) stock is down over 13% in after-hours trading following the earnings release. The EV makers’ shares are down 27% since the start of 2024.
Check back for more info following Rivian’s Q4 2023 earnings call.
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Thanks to a clever, fully electric swing system and “boom up” power assist features, the big PC365-11 hybrid excavator from Komatsu promises better performance and serious fuel savings compared to conventional diesel machines.
Komatsu says its PC365-11 hybrid excavator uses a “boom-up” power assist feature that captures and stores kinetic energy during different operation cycles, then taps into that power to provide an extra energy boost when needed. The result is 15% more productivity and a 20% improvement in fuel efficiency when compared to non-hybrid excavators in ~40 ton class.
“The PC365LC-11 was engineered for excellence in multifunction applications by leveraging its innovative electric powertrain system to boost job site productivity while reducing fuel consumption,” says Matthew Moen, Komatsu’s product manager. “To highlight these performance enhancements, we’re emphasizing the concept of ‘multifunction plus’ as the defining feature of this machine.”
How it works
Komatsu’s hybrid system replaces the conventional hydraulic swing function with a fully electric swing motor that draws power from an ultracapacitor (as opposed to a battery) energy storage unit. As excavator slows or stops swinging, something like a regenerative braking system captures the kinetic energy that would normally be lost as heat and stores it in the capacitor. Once there, the stored energy can be quickly released to power the swing motor or assist the engine, delivering up to an extra 70 hp when needed to support heavy lifting or digging cycles.
And, thanks to Komatsu’s proprietary software, all of this energy capture and reuse happens automagically during normal work, without the need for external charging. The fuel savings happen because removing the hydraulic load from the ICE engine allows it to run at an ultra-low idle, while the productivity comes from the greater power and overall speed of the electric operations vs. conventional hydraulics.
Electrek’s Take
Trust me when I tell you that Komatsu didn’t wake up one day and decide to build a capacitor-based hybrid crane. One of their customers had the idea and came to them, promising orders. That’s what Komatsu does – from undersea remote control dozers to lunar mining rigs (above), if you bring Komatsu an order, they will absolutely find a way to fill it.
As for PC365-11 hybrid excavator, it’s packed with clever tech, overall – offering significant fuel, emissions, and TCO reductions without dramatically changing the operational logistics of an existing fleet’s operations. That’s all the sales pitch it needs.
SOURCE: Komatsu, via Equipment World.
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For serious fleet buyers, safety isn’t a “nice-to-have,” it’s an absolute must – and Kia’s new PV5 electric van meets that need with a positively stellar, five-star safety rating on the tough European NCAP safety test.
The new “do-it-all” Kia PV5 showed strong performance across a number of key safety categories, including Occupant Protection, Safety Assist/Crash Avoidance, and Post-Crash Safety. The PV5’s robust suite of standard ADAS technologies that includes AEB, Lane Support System, and Speed Assistance System also helped the new electric work van to deliver top marks in the NCAP’s “real world” test scenarios.
“The PV5 opens a new chapter in practical, electrified mobility, offering generous space and modular versatility for everyday use,” explains Sangdae Kim, Executive Vice President and Head of the (relatively) new PBV Business Division at Kia. “Achieving the top Euro NCAP five-star rating is clear validation of its safety performance and will serve as strong momentum as Kia expands its PBV lineup across Europe.”
The Euro NCAP tests highlighted the strong performance of a number of the PV5’s ADAS features, specifically calling out the following:
- Demonstrated strong responsiveness in vehicle-to-vehicle scenarios
- Provides additional protection for pedestrians behind the vehicle
- Avoided collisions in most pedestrian and cyclist test cases
The Kia PV5 slots into familiar territory for US buyers, landing roughly in the same size class as the Ford Transit Connect or Ram ProMaster City, with ~180 cubic feet of interior cargo space available, which is plenty to make it attractive for last-mile delivery and trade work in tight urban markets.
Globally, the PV5 is offered with a number of battery options, including a smaller 43.3 kWh Lithium-Iron-Phosphate (LFP) pack, as well as larger Nickel-Cobalt-Manganese (NCM) packs at 51.5 kWh and 71.2 kWh. The longest-range versions are good for about 250 miles of estimated range – more than enough for Kia to make a case for it as a practical, city-focused alternative to much larger (and pricier) electric vans.
Larger vans, by the way, that may not have that 5 star Euro NCAP rating.
Kia PV5
SOURCE | IMAGES: Kia; photo by Scooter Doll.
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