Rivian Automotive, Inc. RIVN CEO R.J. Scaringe cautioned investors on Thursday that the second quarter of 2024 could be challenging due to production disruptions.
What Happened: Scaringe, speaking at Bernstein’s 40th Annual Strategic Decisions Conference, said the EV company is experiencing a slowdown in the second quarter due to a production shutdown in early April implemented to integrate new equipment and hundreds of robots at Rivian’s Normal, Illinois factory.
"From an investor perspective, the second quarter's going to be messy," the CEO said as reported by Electrek.
These upgrades are expected to increase the R1 production line rate by about 30% and incorporate cost-saving changes to the vehicle, as detailed by Scaringe during Rivian’s first-quarter earnings call earlier this month.
Impact On Investors: The R1 is Rivian’s only current consumer vehicle (besides delivery vans). The company plans to begin production of the R2, a smaller and more affordable SUV priced around $45,000 — competing with Tesla’s Model Y — at the same Illinois facility in the first half of 2026. Rivian received a strong initial response to the R2, with over 68,000 reservations within 24 hours of its unveiling in March.
Despite exceeding analyst expectations for first-quarter revenue, Rivian reported a net loss worse than feared. The company also lost $38,784 on each vehicle delivered in Q1. However, Rivian maintains its target of producing 57,000 vehicles in 2024 and achieving a positive gross margin by the fourth quarter.
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