American electric vehicle manufacturer and automotive technology company Rivan posted First quarter (Q1) earnings results, recording a narrow loss in revenue.
Rivan produced 9,395 vehicles in the first quarter of 2023 and reported $661 million in revenue driven by the delivery of 7,946 vehicles, slightly beating expectations and falling from Q4.
It experienced a loss of operations in the first quarter (Q1) of 2023 totaling $1,433 million as compared to $1,579 million in the same period last year. Gross profits fell to negative $535 million in Q1, compared to negative $502 million last year. Overall, Rivan posted a net loss of $1.4 billion, down when compared to $1.6 billion in Q1 2022 and over $1.7 billion from last quarter.
In the first quarter of 2023, the company recognized a non-cash, stock-based compensation expense within operating expenses of $165 million as compared to $307 million in the first quarter of 2022, and depreciation and amortization expense within operating expenses of $58 million as compared to $38 million in the first quarter of 2022.
With cost-cutting measures, the company’s operating expenses fell to $898 million compared to over $1 billion during the same period last year.
Speaking on the way forward the company said, “We continue to believe the supply chain will continue to be the main limiting factor of our normal facility output. Our team continues to work on the introduction of new engineering design changes and key technologies which will take effect during the second half of 2023 to help mitigate anticipated supply chain constraints. Our long-term success as a business will be determined by our ability to produce high volumes of vehicles profitably. The collective efforts across all our teams and functions are focused on delivering this goal. Our target of generating positive gross profit in 2024 is composed of several drivers across the business”.
As the company looks forward to the remainder of 2023, it disclosed that it is maintaining its 50,000 EV production goal for 2023. The EV manufacturer says it remains focused on ramping production and implementing new technology to drive down costs throughout the year.