Losses continue to pile up at Rivian and Lucid in Q2

Despite having received multibillion-dollar investments to stem cash burns, both Rivian Automotive and Lucid Group continued to post large losses in the second quarter.

Rivian Automotive reported a $1.46 billion net loss even with higher vehicle sales and cost cutting. The deficit was 21 percent greater than its $1.2 billion loss in the same period last year, the Irvine, Calif., automaker said in its Aug. 6 financial performance report.

Revenue rose 3.3 percent to $1.16 billion. The gain came from second-quarter sales rising 9 percent to 13,790 vehicles despite a factory shutdown in April to retool for lower production costs and freshen the R1T pickup and R1S crossover for the 2025 model year.

However, Rivian is losing more money on every sale. It lost $32,705 per vehicle delivered in the second quarter, compared with $32,595 in the same period last year.

In the latest example of a funding infusion, executives announced at a June investor event that Volkswagen Group made a $5 billion investment in the automaker, which says it is on a path to profitability. Part of the money will be used for a joint venture to incorporate Rivian's electrical architecture into future VW Group vehicles.

Lucid also will receive a new cash infusion.

The Newark, Calif., automaker said Aug. 5 that the Public Investment Fund of Saudi Arabia will inject $1.5 billion in cash. Ayar Third Investment, an affiliate of the Saudi fund, has agreed to buy $750 million worth of convertible preferred stock and provide a similar amount as a credit line. The fund is Lucid's majority shareholder.

The cash should be enough to fund Lucid's operations through the end of next year, said Gagan Dhingra, Lucid's interim CFO.

Lucid announced the investment on the same day it reported a second-quarter net loss of $790 million despite record sales of its Air sedan in the period. The loss was 3.4 percent higher than in the same quarter last year.

Second-quarter revenue was $201 million, a 33 percent improvement from a year earlier. Lucid said it ended the second quarter with cash, cash equivalents and investments of $4.3 billion.

Lucid reported that it delivered a record 2,394 cars in the quarter. But that came at a cost. The automaker's sales incentives reached $16,537 per vehicle, according to Motor Intelligence. The Air, Lucid's lone model, starts at $71,400 including shipping.

Lucid lost $112,688 per vehicle delivered in the second quarter compared with $288,412 a year earlier.

Both Lucid and Rivian have found themselves pressured by Tesla's sustained cuts in its EV prices.