Rivian Automotive Inc. announced that it is sticking to its goal of producing 57,000 electric vehicles (EVs) in 2024, the same number as this year and 2023. However, the company warned that it will shut down its plant next year to prepare for a new vehicle launch.
The company, based in Irvine, California, also maintained its forecast of a $2.7 billion loss for the year and $1.2 billion in capital spending. Rivian says it aims to achieve a “modest gross profit” by the end of the year, a promise CEO R.J. Scaringe has made to investors.
This financial outlook follows a three-week shutdown of Rivian’s assembly lines in April at its Normal, Illinois factory to improve efficiency for its R1 models. Chief Financial Officer Claire McDonough stated that the plant will close again for several weeks in late 2025 to prepare for the launch of the new R2 model in the first half of 2026.
“We expect that our Normal facility will not be producing vehicles for more than one month as we integrate new equipment into the plant ahead of our first half of 2026 R2 launch,” she told analysts on a conference call.
Stock and Financial Performance
Rivian’s stock dropped by 6.8% in after-hours trading, closing at $13.80. The stock has fallen 37% this year. In the second quarter, Rivian reported an adjusted loss of $1.13 per share, which was slightly better than analysts’ expectations of $1.20 per share. Sales were $1.16 billion, just under the expected $1.17 billion. Revenue from the sale of regulatory credits reached $17 million, compared to almost nothing in the first quarter. Rivian produced 9,612 vehicles in the second quarter, with 13,790 deliveries.
VW Partnership and Financial Support
Earlier this year, Rivian halted the construction of a new plant in Georgia and announced a major partnership with Volkswagen AG in June. Volkswagen’s investment of up to $5 billion is a significant boost for Rivian, which lost about $32,705 per vehicle in the second quarter, an improvement from the $39,000 loss in the previous quarter.
CEO Scaringe mentioned that suppliers are enthusiastic about the partnership with Volkswagen and see opportunities to expand into Volkswagen’s product lines. “From a supplier point of view, we absolutely are already seeing some of the tailwinds associated with our Volkswagen JV and partnership,” he said.
Current and Future Models
Rivian is one of the few dedicated electric vehicle makers in the U.S., second only to Tesla in EV production. However, the company faces challenges with production issues and slowing demand for electric vehicles. Rivian currently produces three models: a mid-sized pickup, a mid-sized SUV, and a commercial van, which is mainly for Amazon, one of its major shareholders.
The company is working to reduce costs before launching the R2, a smaller and more affordable SUV, which it plans to start producing in early 2026. Future plans include next-generation models, the R3 and R3X.
