Rivian's {{ m-tag option="price" ticker="RIVN" currency="USD" }} stock price dropped over 5% in premarket trading on Wednesday following the announcement of its mixed second-quarter results. The company reported revenue of $1.158 billion, slightly below the expected $1.165 billion. However, Rivian recognized an additional $17 million from the sale of regulatory credits. The adjusted loss per share was $1.13, narrower than the anticipated $1.20, and the adjusted net income loss was $1.115 billion, better than the expected $1.194 billion.

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Volkswagen Investment:
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A significant development for Rivian came in June with a joint venture deal with Volkswagen. This collaboration aims to create next-generation software-defined vehicle (SDV) architectures for future EVs from both companies. Volkswagen has committed an initial $1 billion investment in Rivian through an unsecured convertible note, with a potential total investment of up to $5 billion by 2026.

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Net Losses Comparison:
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In contrast, Rivian's net losses widened during the second quarter to $1.46 billion, or $1.46 per share, compared to a $1.2 billion loss, or $1.27 per share, from a year earlier. Despite these losses, Rivian's automotive revenue slightly surpassed expectations, reaching $1.16 billion compared to the $1.14 billion anticipated.

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Investor Day Highlights:
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CEO RJ Scaringe highlighted that cost reductions from factory retooling are expected to take effect in the second half of the year. He also reaffirmed the company's goal of achieving its first profit in the year's final quarter.

Despite these efforts, Rivian's shares have dropped 37% this year, driven by slower-than-expected demand for EVs and significant cash burn. The stock closed Tuesday at $14.80, up 1.3%.

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Financial Challenges:
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Rivian has been ramping up production of dual motor vehicles and other variations to meet immediate customer demand. The strategic partnership with Volkswagen is expected to help sustain Rivian's cash balance until it sells the R2 SUVs. However, the company continues to incur substantial losses on each vehicle sold, with losses of 39% of a vehicle's sales price, higher than the estimated 34%.

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