Rivian’s 2024 Investor Day showcased significant updates and pre-announcements, highlighting the electric vehicle manufacturer’s robust performance and ambitious goals.
According to Rivian’s presentation, the company anticipates delivering between 13,000 and 13,300 vehicles in Q2 2024, surpassing earlier expectations. Wall Street analyst Gary Black, renowned for his insights into EV stocks like TSLA, had projected Q2 deliveries around 10,200 units, indicating Rivian’s outperformance.
See also: Rivian Unveils Future Plans with New Vehicle Models Amid VW Partnership
In terms of production, Rivian disclosed a slightly lower-than-expected output of 9,100 to 9,300 vehicles for the same quarter, compared to forecasts of approximately 10,300 units. Despite this, Rivian affirmed its full-year 2024 target of 57,000 vehicles, demonstrating confidence in its manufacturing capabilities.
Looking ahead, Rivian expressed optimism about achieving positive gross profit by Q4 2024, bolstered by strategic partnerships such as its collaboration with the Volkswagen Group. This alliance is expected to fortify Rivian’s financial position significantly.
In the long term, Rivian aims for a ~25% GAAP gross margin, high teens adjusted EBITDA margin, and approximately 10% free cash flow margin, underscoring its commitment to financial sustainability and profitability.
See also: Volkswagen and Rivian to Form Joint Venture with Potential $5 Billion Investment
The recent $5 billion investment from Volkswagen has been well-received on Wall Street, with analysts like Dan Ives from Wedbush praising it as a “huge win” for Rivian and CEO RJ Scaringe. Ives noted that the partnership effectively addresses significant capital concerns, positioning Rivian favorably in the competitive EV market landscape.
