New Delhi:- Rivian did really well in the second quarter and exceeded what Wall Street expected. They sold a lot of electric vehicles (EVs), reduced their losses, lowered expenses, and improved their supply chain.
The company sounded optimistic in its report on how much money it made during April, May, and June. They were so confident that they increased their estimate for how many vehicles they will make this year from 50,000 to 52,000. The company said that it predicts it will have a loss of $4. 2 billion for the year. This is a big amount of money, but it's not as bad as they thought it would be.
Rivian made $1.12 billion in the second quarter, which is more than three times the amount they made in the same period last year. The increase in revenue was mostly due to selling or delivering 12,640 vehicles. According to the company's official document, about $34 million of their earnings came from selling environmentally-friendly regulatory credits.
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Rivian is still not making a profit, but they are doing a little better. Rivian's financial report shows that they lost $1. 19 billion in the recent quarter, which is less than the $1. 7 billion loss they had in the previous quarter. In simpler terms, Rivian had a loss of $881 million, which means they lost $1. 08 for each share.
Experts surveyed by Yahoo finance predicted that the company's revenue would be $1 billion, while they estimated a loss of $1. 36 per share after making adjustments.
"Our earnings for the second quarter show that we are still committed to cutting costs and making more money," said RJ Scaringe, the founder and CEO. During the last quarter, the number of vehicles delivered increased by approximately 60% compared to the previous quarter. Additionally, the profit generated per vehicle improved by around $35,000. We have been able to lower the cost of making R1 and EDV vehicles. This includes materials, expenses, and transportation. This quarter was really good, and we are still concentrating on increasing production, saving money, creating new technologies, and making our customers happier.
So, basically, the main point is that a company has fixed some of its big money problems, like having bad contracts with some suppliers. Rivian told its shareholders that it successfully worked with suppliers to lower the prices of materials and get rid of extra charges in the short-term.
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Rivian reduced costs by laying off employees in 2022 and 2023, which helped decrease payroll and other expenses.
For example, Rivian used $444 million on studying and creating new products in the second quarter. This is about 18% less than what they spent during the same time last year. The company stated that the decrease in income was mainly because they spent $94 million less on employee salaries and other expenses, including giving employees stocks as a form of payment.
Spending on big investments decreased to $255 million from $359 million in the same period last year. Rivian said it spent more money last year on equipment and building when it first started making things.
Rivian said it finished the second quarter with $10. 2 billion in money, similar forms of money, and short-term investments.
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The electric vehicle company Rivian has gained money to make more electric vehicles in the future. They have also made plans to make more vehicles in 2023 that will be cheaper and have a better supply chain.