Rivian CEO Warns Of Rocky Road Ahead As Production Revamp To Cause 'Messy' Q2
Portfolio Pulse from Anan Ashraf
Rivian Automotive, Inc. (NASDAQ:RIVN) CEO R.J. Scaringe warned investors of a challenging Q2 2024 due to production disruptions from integrating new equipment and robots at their Illinois factory. Despite a strong initial response to the upcoming R2 SUV and exceeding Q1 revenue expectations, Rivian reported a significant net loss and high per-vehicle loss. The company aims to produce 57,000 vehicles in 2024 and achieve a positive gross margin by Q4.
May 31, 2024 | 11:47 am
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Rivian's CEO warned of a challenging Q2 2024 due to production disruptions from integrating new equipment and robots. Despite strong initial response to the R2 SUV and exceeding Q1 revenue expectations, Rivian reported a significant net loss and high per-vehicle loss. The company aims to produce 57,000 vehicles in 2024 and achieve a positive gross margin by Q4.
The production disruptions and the CEO's warning about a 'messy' Q2 are likely to negatively impact investor sentiment in the short term. Despite positive aspects like strong R2 reservations and exceeding Q1 revenue expectations, the significant net loss and high per-vehicle loss will likely weigh on the stock price.
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