Rivian loses $1.46 billion in Q2 as it looks toward a VW-linked future

Rivian’s financial losses have widened as it phases out its first-generation R1 trucks and SUVs and moves on to newer, more cost-efficient versions — a sign of how little the company can use the $5 billion it received in its recently announced deal with Volkswagen Group.

The company announced on Tuesday that it had a loss of $1.46 billion in the second quarter of 2024, compared to a loss of $1.45 billion in the first quarter. This loss is about $300 million more than the second quarter of last year.

As a result, Rivian’s cash and cash equivalents balance at the end of the quarter was $5.76 billion. This includes the first $1 billion it received from VW.

All this comes as Rivian has begun shipping new versions of the R1 that are simpler and cheaper to build. Rivian CEO RJ Scaringe has said these vehicles shipped on a large scale will help the company reach positive gross profit by the end of 2024.

But since Rivian expects to make and sell roughly the same number of electric vehicles this year as it did in 2023, all eyes are on its second model — the R2 SUV, due in 2026 — to help establish it as a sustainable company.

Until then, Rivian will be helped by an additional $4 billion that VW is pumping into the young automaker — as long as the two companies finalize the agreement. That’s expected to happen in the fourth quarter of this year. Once complete, the deal will help Rivian and VW form a joint venture that will leverage Rivian’s advanced electrical architecture and software. That technology will flow into Rivian’s R2 and many EVs from the VW Group and possibly EVs made by other automakers.

Rivian will also look to other ways to grow its business. For example, the company said Tuesday it sold $17 million worth of regulatory credits to other companies in the second quarter. The company is also building an EV charging network to support its vehicles, which could bring in some additional revenue.

This story is developing…