A Thursday investor occasion for Rivian Automotive that centered on cost-cutting efforts, effectivity positive aspects and in-house applied sciences and software program wasn’t sufficient to construct upon the corporate’s vital share development this week.

Shares of the all-electric car startup had been down by roughly 2% to six% for a lot of the occasion, consuming into a few of its 23.2% acquire in shares Wednesday that got here after it introduced plans for an as much as $5 billion investment by Volkswagen Group. Shares of the corporate stay off by roughly 40% this 12 months amid vital money burn and slowdown in EV gross sales.

Rivian on Thursday reconfirmed its 2024 steering that included manufacturing of 57,000 autos and a path to optimistic gross revenue through the fourth quarter, together with regulatory credit. It additionally outlined longer-term growths, reminiscent of plans to attain optimistic adjusted earnings earlier than curiosity, taxes, depreciation and amortization in 2027.

“All the pieces that you simply’re listening to from us, round our product, round how we’re operating the enterprise, round how we’re driving towards profitability, my hope is that you simply’re seeing actually an excessive sense of urgency,” Rivian CEO RJ Scaringe said during the event. “We’re very, very quick driving in the direction of the enhancements essential to get to optimistic free money move and, earlier than that, optimistic margins this 12 months.”

Rivian additionally outlined long-term monetary targets of a roughly 25% gross margin, 10% free money move and adjusted revenue margin within the “excessive teenagers.” The corporate didn’t launch a timeframe for these targets.

Scaringe spent a lot of his time through the roughly four-hour presentation discussing efficiencies within the firm’s merchandise and manufacturing — which he stated are anticipated to result in 20% materials value reductions in its present autos, adopted by 45% focused reductions in its upcoming “R2” autos, that are anticipated to start manufacturing in early 2026.

The reductions vary from bodily financial savings, reminiscent of a 54% lower in design prices of its R2 autos in contrast with present fashions, to decrease prices on extra advanced programs reminiscent of battery packs and electrical {hardware}. For instance, the corporate is utilizing 10 fewer in-house digital management items, or ECUs, in its just lately redesigned R1 autos, permitting it to take away 1.6 miles in wiring harness size and 44 kilos out of the car.

Rivian’s software program experience is on the heart of VW’s plans to invest $5 billion within the automaker by 2026, together with an anticipated three way partnership between the businesses to create electrical structure and software program know-how.

Volkswagen is anticipated to make use of Rivian’s electrical structure and software program stack for autos starting within the second half of the last decade, Scaringe said Tuesday. He stated the three way partnership doesn’t embrace something with battery applied sciences, car propulsion platforms, excessive voltage programs or autonomy and electrical {hardware}.

Rivian CFO Claire McDonough reaffirmed Thursday that the capital from Volkswagen is anticipated to strengthen the corporate’s steadiness sheet, which ended the primary quarter with $7.9 billion in money.

The capital inflow is anticipated to hold Rivian by means of the manufacturing ramp-up of its smaller R2 SUVs at its plant in Regular, Illinois, beginning in 2026, in addition to manufacturing of its midsize EV platform at a paused plant in Georgia.

Rivian is closely betting on its next-generation all-electric autos to hold the automaker’s development and focused profitability through the second half of this decade.

The EV startup stated Thursday it expects manufacturing of its R2 next-generation vehicles to signify as much as 72%, or 155,000 items, of its greater than 200,000-unit manufacturing capability at its present plant in Illinois. The plant presently has the potential to supply 150,000 business supply vans in addition to its flagship “R1” SUV and pickup EVs.

The automaker’s $2 billion plant in Georgia, which it paused building of earlier this 12 months to avoid wasting capital, is anticipated to be able to 400,000 items on two strains.

Pausing the plant was a significant a part of the corporate’s plans to reduce planned capital expenditures by $2.5 billion by means of 2025, together with reductions of 55% in manufacturing and 20% in product improvement. The corporate nonetheless expects to spend about $2.7 billion by means of 2025, McDonough stated Thursday.

“We have centered on materials value and actually decreasing the general value of products offered, in addition to our working bills,” she stated. “Capex is one other key lever for us that we centered on as nicely over the course of the previous few years that will probably be central to our long-term success in bringing and scaling our R2 out there.”