Latest news with #RJScaringe
Yahoo
5 days ago
- Automotive
- Yahoo
Rivian reports Q2 net loss of $1.1 billion, keeps 2025 delivery guidance
Electric vehicle maker Rivian Automotive reported a second-quarter net loss of $1.1 billion, an improvement over its $1.5 billion net loss in the same period last year. Revenue rose 13 percent from a year earlier to $1.3 billion, the company said Aug. 5. The California automaker reiterated its 2025 delivery guidance of 40,000 to 46,000 vehicles, but it will need a strong second half to hit that range. On the company's earnings call, CEO RJ Scaringe said Rivian faces a more challenging business climate due to policy changes enacted during the Trump administration, including increased tariffs and cuts to federal support for EVs. 'The policy environment continues to be complex and rapidly evolving,' Scaringe said. 'Changes to EV tax credits, regulatory credits, trade regulation and tariffs are expected to have an impact on the results and the cash flow of our business.' Rivian posted a gross loss of $206 million in the second quarter, compared with a gross loss of $451 million a year earlier. Rivian achieved its first gross profit in the fourth quarter of 2024, followed by another one in the first quarter. The automaker said it no longer expects to reach positive gross margin in 2025, citing headwinds including policy changes that have reduced the value of regulatory credits and other subsidies. Rivian also forecast a bigger adjusted EBITDA loss this year, expecting it to be $2 billion to $2.25 billion, compared with a previous forecast of $1.7 billion to $1.9 billion. CFO Claire McDonough said tariffs, which didn't significantly impact costs in the second quarter, 'are expected to have a net impact of a couple thousand dollars per unit for the remainder of 2025.' Rivian expects a significant drop in revenue from emissions-related regulatory credits that it sells other automakers, McDonough said on the call. 'We do not expect to earn revenue from these programs for the remainder of 2025. We expect total 2025 regulatory credit sales to be approximately $160 million as compared to our prior outlook of $300 million,' McDonough said. The automaker's stock price fell about 5 percent in after-hours trading Aug. 5. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Rivian faces headwinds from flattening consumer demand for EVs, higher tariffs on imported parts and the elimination of the $7,500 consumer tax credit on Sept. 30. In July, Rivian reported a 23 percent decline in second-quarter deliveries from a year earlier to 10,661 vehicles. With first-quarter deliveries of 8,640, Rivian needs to sell about 21,000 vehicles in the second half of the year to meet the low end of its 2025 forecast. Rivian raised prices modestly for the 2026 model year. The R1T pickup now starts at $72,885, up from $71,700, and the R1S crossover starts at $78,885, up from $77,700. All prices include shipping. Rivian is betting on its lower-priced R2 crossover, scheduled to launch next year, to broaden its appeal. The automaker has a target price of $45,000 before shipping for the base R2 trim. Scaringe said the price target for the R2 remains the same despite the loss of the tax credit. Rivian will launch a premium trim before selling the base model, he added. 'Having spent a lot of time driving R2, I'm more bullish on this vehicle than any product we've developed,' he said. 'The product market fit is incredible. The packaging, the technology and overall value proposition set R2 up for meaningful share.' Future Product Rivian future product Find our what powertrains, redesigns and freshenings are planned for the next four years. View the list Brand future product timelines Send us a letter to the editor Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
6 days ago
- Automotive
- Reuters
Rivian, Lucid warn of bumpy road ahead as policy changes hurt
Aug 5 (Reuters) - Rivian (RIVN.O), opens new tab and Lucid (LCID.O), opens new tab posted disappointing quarterly earnings on Tuesday and provided a grim outlook for the year as the electric vehicle makers take a hit from policy shifts and trade tensions that have disrupted the industry. Shares of Rivian fell about 4% after the bell, while Lucid shares dropped 7%. EV makers are navigating a bumpy road under U.S. President Donald Trump's administration, which has decided to take away consumer tax credits, impose high tariffs on imports of auto parts and remove emission fines for makers of gas vehicles. Add to that, China's curbs on the export of heavy rare earth metals - essential components for motors - have disrupted supply chains and affected production in the U.S. Rivian flagged higher costs in the June quarter, hit by disruptions to rare earth supply, and increased its adjusted core loss forecast for the year as income from the sale of regulatory credits dries up. Its cost of revenue for each vehicle produced rose about 8% to $118,375 per unit sold from a year earlier, according to Reuters calculations. "That's really reflecting a much lower production volume, which was largely driven because of challenges we had within our supply base as a result of a lot of the changes in policy," CEO RJ Scaringe told Reuters. "Therefore, our costs look higher, but it's not as if our bill of materials grew or as if we became operationally less efficient." Lower production in the June-quarter led to a $14,000 impact per vehicle sold to cost of good sold, CFO Claire McDonough said in a call with analysts. The company will shut down production for three weeks in September, after a one-week pause in the second quarter, to integrate components and prepare for the launch of its smaller and cheaper R2 SUV next year that is seen as crucial to its success. While Lucid said it managed to largely avoid the rare earth supply disruption by using some magnets from its inventory, its profit margin was hurt by tariff-related costs in the second quarter. The luxury EV maker cut its annual production forecast. The $7,500 federal EV tax credit expires at the end of September, eliminating a key competitive advantage that has driven demand, but analysts anticipate a surge in third-quarter sales as customers rush to make purchases before losing access to the incentive. "We're definitely expecting that there is some softening in demand (in the fourth quarter)," Lucid's interim CEO Marc Winterhoff told Reuters. The company has planned countermeasures to make it "palatable" for consumers, he said, without disclosing details. The elimination of penalties for automakers not meeting fuel economy standards by Trump's administration has drastically reduced demand for regulatory credits, which companies like Rivian and Lucid sell to traditional automakers to help them avoid emissions fines. Rivian largely blamed a tapering in the value of U.S. regulatory credits - expected to be about half of the $300 million it estimated - for the higher loss estimate and said it no longer expected revenue from such sales in the second half of the year. Rivian said it expected its adjusted core loss to be between $2 billion and $2.25 billion this year, compared with $1.7 billion to $1.9 billion previously forecast. Rivian anticipates gross profit this year to roughly break even. It earlier expected a modest profit. Rivian said on Tuesday it expected record deliveries in the third quarter across its consumer and commercial segments as demand is pulled forward. Apart from its SUVs and pickups, Rivian makes electric delivery vans for fleets, including which is its largest shareholder.
Reuters
6 days ago
- Automotive
- Reuters
Rivian's loss bigger than expected as rare earth curbs raise costs, credits fade
Aug 5 (Reuters) - Rivian Automotive (RIVN.O), opens new tab reported a higher-than-expected quarterly loss on Tuesday as disruption in supply of rare earth metals used to make parts of its electric vehicles raised costs and income from credits sold to traditional automakers dwindled. Shares of the automaker fell nearly 5% in trading after the bell. China's curbs on the export of heavy rare earth metals —essential components for motors — sharply increased material costs and disrupted supply chains, driving up the cost of EV production in the U.S. Rivian's cost of revenue for each vehicle produced rose about 8% to $118,375 per unit sold from a year earlier, according to Reuters calculations. "That's really reflecting a much lower production volume, which was largely driven because of challenges we had within our supply base as a result of a lot of the changes in policy," CEO RJ Scaringe told Reuters. "Therefore, our costs look higher, but it's not as if our bill of materials grew or as if we became operationally less efficient." Rivian will shut down production for three weeks in September, after a one-week pause in the second quarter, to integrate key components and prepare for the launch of the R2 SUV next year. The company reported an adjusted loss per share of 80 cents for the second quarter, compared with analysts' average estimate of 65 cents, according to data compiled by LSEG. Rivian also flagged a bigger adjusted core loss this year, expecting it to be between $2 billion and $2.25 billion, compared with $1.7 billion to $1.9 billion previously forecast. The company largely blamed a tapering in the value of U.S. regulatory credits for the higher loss estimate. The elimination of penalties for automakers not meeting fuel economy standards by President Donald Trump's administration has drastically reduced demand for regulatory credits, which companies like Rivian previously sold to traditional automakers to help them avoid emissions fines. Meanwhile, Lucid (LCID.O), opens new tab cut its annual production forecast and missed Wall Street estimates for quarterly revenue as trade tensions took a toll on demand. The luxury EV maker's shares slid more than 7% in extended trading after the company also said it had issues with the supply of magnets, but had resolved it by using substitutes. The $7,500 federal EV tax credit expires at the end of September, eliminating a key competitive advantage that has driven demand, but analysts anticipate a surge in third-quarter sales as customers rush to make purchases before losing access to the incentive. Rivian said on Tuesday it expected record deliveries in the third quarter across its consumer and commercial segments. The Amazon-backed company's revenue for the second quarter stood at $1.3 billion, surpassing analysts' average estimate of $1.28 billion, according to data compiled by LSEG. Rivian delivered 10,661 vehicles in the second quarter, marking a 22% decline from the same period a year earlier, as the company limited production to prepare for its 2026 model year launch.
CNBC
6 days ago
- Automotive
- CNBC
Rivian CEO: Trade policy on heavy earth metals had a significant impact on production volume
CNBC's Phil LeBeau with RJ Scaringe, Rivian CEO, join 'Closing Bell: Overtime' to discuss the company's Q2 earnings miss, deliverables and impact of auto tariffs.
Yahoo
31-07-2025
- Automotive
- Yahoo
Rivian Launches New East Coast Headquarters in Atlanta
Rivian Automotive, Inc. (NASDAQ:RIVN) is among the 12 Best EV Charging Stocks to Buy According to Hedge Funds. Rivian Automotive, Inc. (NASDAQ:RIVN) has announced that it plans to set up its East Coast headquarters in Atlanta, Georgia, as part of its ongoing $5 billion investment in the state. It is anticipated that the office, which will open in late 2025 at the Junction Krog District building of Portman Holdings at 667 Auburn Ave NE, will initially employ 100 workers before growing to 500 when it reaches full capacity. A state-of-the-art electric vehicle charging at a station at a suburban mall. This statement supports Rivian Automotive, Inc. (NASDAQ:RIVN)'s proposed 7,500-person EV manufacturing plant in Stanton Springs North, which is close to Social Circle. Georgia Governor Brian Kemp and Atlanta Mayor Andre Dickens commended the action, pointing to the creation of jobs and the city's increasing contribution to the development of electric vehicles. Rivian Automotive, Inc. (NASDAQ:RIVN) CEO RJ Scaringe cited Atlanta's talent and culture as important considerations in the choice. The business also intends to work with nearby educational establishments as it grows. This key location enhances Georgia's standing in the EV industry and fortifies the company's East Coast foothold. It is one of the Best EV Stocks. While we acknowledge the potential of RIVN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025. Disclosure. None.
