By Akash Sriram
(Reuters) – Rivian (NASDAQ:) shareholders will search particulars on the corporate’s upcoming fashions and progress in reducing prices at an investor day occasion on Thursday, two days after the US electrical automobile maker introduced a $5 billion funding from Volkswagen (ETR:).
The JV, which can give VW entry to Rivian’s electrical structure and software program, is a “vote of confidence” within the American automaker’s prospects because it appears to be like to provide and promote cheaper R2 and R3 crossovers to compete with Tesla (NASDAQ:)’s bestselling Mannequin Y SUV.
Amazon (NASDAQ:).com-backed Rivian nonetheless misplaced about $39,000 per automobile offered within the first quarter, however analysts count on the corporate to put up its first quarterly gross revenue within the fourth quarter.
Rivian halted manufacturing for 3 weeks in April to implement cost-saving measures. Reuters reported final week the corporate has retooled its manufacturing course of, leading to a 35% discount in the price of supplies for vans and financial savings of “comparable magnitude” for its different strains.
“Rivian will likely be sharing extra concerning the R2 and R3 fashions, in addition to particulars on the take care of Volkswagen,” stated Michael Shlisky, analyst at D.A. Davidson. “I’m certain monetary particulars will likely be mentioned, however they might wait till subsequent week to share Q2 gross sales figures and steering updates.”
Demand for electrical automobiles has faltered amid excessive borrowing prices, and as consumers flip to cheaper gasoline-electric hybrid automobiles.
Wall Avenue expects Rivian to put up second-quarter deliveries of 10,282 models and manufacturing of 9,369 automobiles, when it stories quarterly figures subsequent week, in keeping with analysts polled by Seen Alpha.
Even Tesla is struggling and is predicted to report its first drop in annual gross sales this 12 months. It has slashed costs and is providing incentives to promote extra automobiles.
Amongst EV startups, Rivian is finest positioned to outlive weak demand, due to the funding from VW. A few of its friends comparable to Fisker (OTC:) have filed for chapter.
Rivian had practically $6 billion of money and money equivalents on the finish of the March quarter.
To avoid wasting money, Rivian plans to make the brand new fashions at its present Illinois facility and paused investments in a beforehand introduced plant in Georgia.
Rivian’s inventory has misplaced greater than a 3rd of its worth this 12 months, even after its best-ever one-day acquire of 23% on Wednesday, partly as a result of firm sticking to its manufacturing forecast of 57,000 for the 12 months – roughly the identical as 2023.
