Rivian Projects Q2 Vehicle Production of 9.1K-9.3K, Below Est. 10.29K; Q2 Deliveries Expected at 13K-13.3K, Above Est. 10.24K; Plans $2.5B+ Capex Reductions 2023-2025; Expects 45% Material Cost Reduction from R1 Gen 2 to R2; Targets R2 Launch in 2026; Reaffirms 2024 Guidance of 57K Units Produced; Aims for 10% Long-Term Free Cash Flow Margin; Long-Term Financial Targets Include High-Teens Adjusted EBITDA Margin
Portfolio Pulse from Benzinga Newsdesk
Rivian projects Q2 vehicle production of 9.1K-9.3K, below estimates of 10.29K, but Q2 deliveries are expected to be 13K-13.3K, above estimates of 10.24K. The company plans $2.5B+ in capex reductions from 2023-2025, expects a 45% material cost reduction from R1 Gen 2 to R2, and targets the R2 launch in 2026. Rivian reaffirms its 2024 guidance of 57K units produced and aims for a 10% long-term free cash flow margin and high-teens adjusted EBITDA margin.
June 27, 2024 | 1:00 pm
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Rivian's Q2 vehicle production is projected below estimates, but deliveries are expected to exceed expectations. The company plans significant capex reductions and material cost savings, reaffirming its 2024 production guidance and targeting strong long-term financial metrics.
While the Q2 production is below estimates, the higher-than-expected deliveries and significant cost-saving measures, along with reaffirmed guidance and strong long-term financial targets, are likely to positively impact investor sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100