Rivian’s monetary losses have crept up as it pushed out the final of its first-generation R1 vehicles and SUVs in favor of newer, extra value environment friendly variations — a signal of simply how a lot the corporate may use the $5 billion that would come its means as a part of a lately introduced cope with Volkswagen Group.
The firm introduced Tuesday that it lost $1.46 billion in the second quarter of 2024, up from a first-quarter lack of $1.45 billion. The loss was practically $300 million worse than the second quarter final 12 months.
As a consequence, Rivian’s stability of money and money equivalents was $5.76 billion on the finish of the quarter. That contains the primary $1 billion from VW.
This all comes as Rivian has begun delivery revamped variations of the R1 which are easier and cheaper to make. Rivian CEO RJ Scaringe has stated these autos, shipped at scale, ought to assist the corporate attain constructive gross revenue by the tip of 2024.
But since Rivian is anticipating to make and promote roughly the identical variety of EVs this 12 months as it did in 2023, all eyes are on its second mannequin — the R2 SUV, due out in 2026 — to assist set up it as a sustainable firm.
Until then, Rivian might be helped by the extra $4 billion that VW will pour into the younger automaker — as lengthy as the 2 firms finalize the settlement. That is meant to occur someday in the fourth quarter of this 12 months. Once full, the deal will see Rivian and VW create a three way partnership that can leverage Rivian’s superior electrical structure and software program. That expertise will move into Rivian’s R2 and the various VW Group’s EVs, and probably ones constructed by different automakers.
Rivian may also flip to different strategies to pad out its enterprise. For occasion, the corporate stated Tuesday that it offered $17 million value of regulatory credit to different firms in the second quarter. The firm can be constructing out an EV charging community to help its autos that would pull in some further income.
This story is growing…