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Rivian shares slide after Q2 beat as investors weigh margin and dilution risk
Rivian reported $1.658 billion in Q2 revenue and $179 million gross profit, but the automotive segment still posted a $36 million gross loss and investors focused on an July $1.3 billion equity sale.
Rivian’s second-quarter results included a broad earnings beat that failed to lift the stock, with investors instead concentrating on profitability mix and potential dilution. According to Yahoo Finance, Rivian posted $1.658 billion in revenue, up 27% year over year, and delivered $179 million of gross profit versus a year-ago loss.
The gross profit, however, masked ongoing losses in core vehicle manufacturing. Software and services contributed $215 million of gross profit, while the automotive segment recorded a $36 million gross loss, with Yahoo Finance noting that the profit depended on software revenue tied in part to Rivian’s joint venture with Volkswagen, which contributed $308 million of software revenue in the quarter.
Rivian also said it began shipping its R2 SUV on June 9 and generated a record 57,000 demo drives during the quarter. Yahoo Finance reported management raised full-year delivery guidance to a range of 65,000 to 70,000 vehicles and trimmed planned capital spending by $250 million at the midpoint.
Despite the operational progress and guidance changes, the stock fell sharply, closing down more than 9% to $15.22 on Friday after a late reaction following Thursday’s report. Yahoo Finance pointed to investor expectations for dilution from a $1.3 billion equity sale completed in July, alongside concerns about rising component costs that could pressure margins as R2 output increases.