Rivian Automotive (NASDAQ: RIVN) stock fell during intraday trading Thursday despite the EV startup confirming its full-year production forecast and projecting second-quarter deliveries to surpass analysts’ expectations.
During Rivian’s investor day on Thursday, the electric vehicle (EV) startup reaffirmed its 2024 production forecast. The company said it aims to manufacture 57,000 vehicles by year-end and expects deliveries to total between 13,000 and 13,300 in Q2, slightly above analysts’ estimates of 12,000 deliveries.
Rivian will disclose official second-quarter delivery and production figures on July 2.
The company also reported Thursday that it has delivered between 26,600 and 26,900 vehicles year-to-date, with production reaching 23,100 to 23,300 units during the same period.
In addition, Rivian reiterated its target to achieve positive gross profit per vehicle by the fourth quarter of this year. The startup plans to reach this goal primarily by reducing material costs, obtaining regulatory credits, and implementing other cost-saving measures. The company incurred a loss of $38,784 per vehicle delivered in Q1.
The development comes a day after Rivian unveiled a significant partnership with Volkswagen. The partnership, valued at $5 billion, involves Volkswagen’s investment in Rivian and cooperation on software development and electrical architecture design. It’s worth noting that the joint venture currently excludes battery technology, propulsion platforms, high-voltage systems, and autonomous driving solutions.
According to Rivian CEO RJ Scaringe, the joint venture will appoint two co-chief executives, with Rivian overseeing technical leadership and Volkswagen managing operational leadership. Both companies will maintain independent management of their respective vehicle businesses.
The agreement outlines a total investment commitment of $5 billion from Volkswagen, beginning with an initial $1 billion, and plans for an additional $4 billion investment over time.
Rivian (NASDAQ: RIVN) Stock Reaction
On Thursday, RIVN stock declined 1.83%, closing at $14.47, marking a 40.08% increase for the week. The trading volume was 96,798,080 shares, significantly higher than the average daily volume of 42.25 million.
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