Rivian Automotive backs full-year production guidance, sees positive gross profit in Q4
Rivian Automotive $Rivian Automotive (RIVN.US)$ is holding an investor event on Thursday on the heels of the electric vehicle maker's huge announcement of a partnership with Volkswagen .
The company published some investor slides ahead of the event that indicated it was reaffirming guidance of 57,000 units of production for 2024. For Q2, production of 9.1K to 9.3K units is anticipated, and a deliveries tally of 13.0K to 13.3K units is expected.
Looking ahead, Rivian Automotive said the Gen 2 model introduction, combined with commercial cost downs and commodity tailwinds, is expected to reduce material cost by ~20%. Rivian also said it is on a path to positive gross profit in Q4 and positive adjusted EBITDA in 2027. A long-term financial target is for ~25% GAAP gross margin and a ~10% free cash flow margin.
In terms of the Volkswagen financial commitment, the company expects to see a $1.0 billion payment at the inception of the joint venture this year and $1.0 billion from a convertible note. Equity investments of $1.0 billion are expected in both 2025 and 2026, as well as a $1.0 billion debit contribution in 2026.
Shares of Rivian Automotive were down 5.56% in on Thursday to $13.90 after rallying more than 23% on Wednesday.
The company published some investor slides ahead of the event that indicated it was reaffirming guidance of 57,000 units of production for 2024. For Q2, production of 9.1K to 9.3K units is anticipated, and a deliveries tally of 13.0K to 13.3K units is expected.
Looking ahead, Rivian Automotive said the Gen 2 model introduction, combined with commercial cost downs and commodity tailwinds, is expected to reduce material cost by ~20%. Rivian also said it is on a path to positive gross profit in Q4 and positive adjusted EBITDA in 2027. A long-term financial target is for ~25% GAAP gross margin and a ~10% free cash flow margin.
In terms of the Volkswagen financial commitment, the company expects to see a $1.0 billion payment at the inception of the joint venture this year and $1.0 billion from a convertible note. Equity investments of $1.0 billion are expected in both 2025 and 2026, as well as a $1.0 billion debit contribution in 2026.
Shares of Rivian Automotive were down 5.56% in on Thursday to $13.90 after rallying more than 23% on Wednesday.
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