Rivian Automotive adjusted its financial guidance for the year, lowering capital expenditure projections and narrowing expected losses during second-quarter earnings disclosure. The company revised adjusted loss guidance to a range of $1.8 billion to $2 billion, compared with the previous forecast of $1.8 billion to $2.1 billion. Capital expenditure guidance was reduced to $1.7 billion to $1.8 billion from an earlier range of $1.95 billion to $2.05 billion, representing approximately $250 million in savings at the midpoint.
The automaker attributed the spending reduction to project efficiencies and adjusted timing of capital deployment, even as it maintained previously elevated investment levels for emerging technologies including its hands-free driving capabilities. Rivian reaffirmed its delivery target of 65,000 to 70,000 vehicles for the year. Second-quarter results demonstrated operational progress, with gross profit reaching $179 million, a significant improvement from a $206 million loss in the prior-year period. The automotive segment posted a $36 million loss while the software and services division generated $215 million in profit.
Revenue performance exceeded expectations, with automotive sales of $1.14 billion and software and services revenue of $515 million, totaling $1.655 billion against preannounced expectations of $1.55 billion to $1.65 billion. Automotive revenue expanded 23 percent annually, driven by a 14 percent increase in vehicle deliveries and $103 million in regulatory credit revenues. The company’s net loss attributable to common shareholders declined to $837 million or 63 cents per share, representing $278 million or 34 cents per share of improvement year-over-year.
Rivian commenced customer deliveries of its midsize R2 SUV during the quarter at its Normal, Illinois manufacturing facility, which maintains annual production capacity of 160,000 units. The company maintained a liquidity position of approximately $5.3 billion in cash, equivalents, and short-term investments. Management indicated expectations to secure $1 billion in non-recourse debt financing from a software arrangement with Volkswagen Group and $250 million in additional equity investment through a partnership with Uber later in the year.
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