Landon Capital

Rivian investors to seek details on path to profits at investor day.

By Akash Sriram

(Reuters) – Rivian (NASDAQ: RIVN) shareholders will seek details on the company’s upcoming models and progress in cutting costs at an investor day event on Thursday, two days after the US electric vehicle maker announced a $5 billion investment from Volkswagen (ETR: VOWG_p).

The JV, which will give VW access to Rivian’s electrical architecture and software, is a “vote of confidence” in the American automaker’s prospects as it looks to produce and sell less expensive R2 and R3 crossovers to compete with Tesla (NASDAQ: TSLA)’s bestselling Model Y SUV.

Amazon (NASDAQ: AMZN).com-backed Rivian still lost about $39,000 per vehicle sold in the first quarter, but analysts expect the company to post its first quarterly gross profit in the fourth quarter.

Rivian halted production for three weeks in April to implement cost-saving measures. Reuters reported last week the company has retooled its manufacturing process, resulting in a 35% reduction in the cost of materials for vans and savings of “similar magnitude” for its other lines.

“Rivian will be sharing more about the R2 and R3 models, as well as details on the deal with Volkswagen,” said Michael Shlisky, analyst at D.A. Davidson. “I am sure financial details will be discussed, but they may wait until next week to share Q2 sales figures and guidance updates.”

Demand for electric vehicles has faltered amid high borrowing costs, and as buyers turn to cheaper gasoline-electric hybrid vehicles.

Wall Street expects Rivian to post second-quarter deliveries of 10,282 units and production of 9,369 vehicles, when it reports quarterly figures next week, according to analysts polled by Visible Alpha.