Rivian Reports Mixed Q3 Results With Vision For Q4 Profit And Affordable R2 Model

Rivian reported mixed third-quarter results in its electric vehicle (EV) strategy with revenue falling short of expectations while the company maintains its path toward positive gross profit by year-end.

Net Loss and Lower Deliveries

According to Rivian’s Q3 earnings results, revenue for the quarter came in at $874 million, marking a significant 35% decline from Q3 2023, primarily due to reduced delivery van shipments to Amazon compared to the previous year. The company reported a net loss of $1.1 billion, or $1.08 per share, showing improvement from the $1.34 billion loss in the same period last year.

Supply Chain and Production Revision

Production challenges continued to impact Rivian’s performance, with the company delivering 10,018 EVs in Q3, representing a 36% drop from the previous year and the lowest quarterly delivery figure since early 2023. A supply chain bottleneck, stemming from a miscommunication with a supplier, forced Rivian to revise its 2024 production target down to 47,000 to 49,000 EVs from the initial 57,000 goal.

The company’s per-vehicle losses increased to $39,130 in Q3, up from $32,705 in Q2. In response to the lower production outlook, Rivian adjusted its annual EBITDA loss guidance to between $2.83 billion and $2.88 billion, slightly more than the previous forecast of $2.7 billion.

Despite these headwinds, CEO RJ Scaringe remained optimistic about the company’s future, highlighting “meaningful progress” in reducing material costs through new technology and manufacturing processes. The company maintains its target of achieving positive gross profit in Q4 2024.

Rivian’s R2 Model and Partnerships

In terms of future potential growth, Rivian is positioning itself for progress with its upcoming R2 model, set to launch in the first half of 2026 with a starting price of $45,000 – around half the cost of current models. The company plans to produce 155,000 R2 models annually, alongside 85,000 R1S and R1T vehicles at its Normal facility.

Furthermore, Rivian’s financial position remains stable with $6.7 billion in cash and equivalents, including a $1 billion convertible note from Volkswagen. The recently announced alliance with Volkswagen, valued at up to $5 billion, is being touted as a “landmark development for the industry” and is expected to provide sufficient capital to fund operations through the R2 launch.

Read More: Rivian’s Latest $3K Discount Help Gas And Hybrid Owners Make The Switch To EV

Future Growth Prospects

Rivian’s Q3 results reflect the growing pains of a young EV automaker, with production hurdles and supply chain issues impacting short-term performance. However, the company’s strategic focus on cost reduction, and upcoming product launches including the more affordable R2 model, positions Rivian for potential growth in the competitive EV market.

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