Rivian posts Q3 revenue miss; full-year loss projection widens, but ‘modest gross profit’ still expected in Q4

Rivian (RIVN) reported third quarter revenue that missed the mark and a wider-than-expected loss because the pure-play adventure electric vehicle maker was burdened by a supplier parts issue. Though the corporate now projects a wider loss than expected for the yr, it maintained its full-year delivery forecast and still sees a “modest gross profit” coming within the fourth quarter.

For the quarter, Rivian reported revenue of $874 million versus $980 billion expected per Bloomberg consensus, a drop from the $1.34 billion it generated a yr ago. The corporate reported an adjusted loss per share of $0.99 versus an expected lack of $0.92, and an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) lack of $757 million, in comparison with $657.5 million expected.

Rivian stock dropped in after-hours trading.

Last month Rivian said it was “experiencing a production disruption” on account of a shortage of a shared component on the R1 and RCV (Rivian business van) platforms. The corporate said a supply shortage impact began in Q3 of this yr and has turn out to be “more acute in recent weeks and continues.”

Consequently of the disruption, Rivian disclosed today that it was revising its full-year adjusted EBITDA guidance to a lack of $2.82 billion to $2.87 billion, larger than the $2.7 billion loss it previously forecast.

Rivian maintained its annual production guidance to between 47,000 and 49,000 vehicles, down from the 57,000 it expected previously.

The corporate did reaffirm its annual delivery outlook of low-single-digit growth as in comparison with a yr ago, which it expects to be within the range of fifty,500 to 52,000 vehicles.

Rivian CEO RJ Scaringe tours the within of electrical automaker Rivian’s manufacturing facility in Normal, Unwell., June 21, 2024. (REUTERS/Joel Angel Juarez) · REUTERS / Reuters

Despite the Q3 production and provide chain issues, Rivian said it expects “to succeed in a modest gross profit” within the fourth quarter of this yr.

“This quarter we now have made progress against our key objectives and have seen meaningful progress on our Gen 2 R1 cost structure on account of the brand new technologies incorporated into the vehicle and manufacturing process,” CEO RJ Scaringe said in a press release. “We’re excited in regards to the future and our midsize SUV, R2, which we consider might be a fundamental driver of Rivian’s growth.”

When it comes to its money cushion, Rivian said it ended the second quarter with $7.85 billion in money and equivalents.

FILE PHOTO: Workers assemble second-generation R1 vehicles at electric auto maker Rivian's manufacturing facility in Normal, Illinois, U.S. June 21, 2024.  REUTERS/Joel Angel Juarez/File Photo
Employees assemble second-generation R1 vehicles at electric automaker Rivian’s manufacturing facility in Normal, Unwell., June 21, 2024. (REUTERS/Joel Angel Juarez/File Photo) · REUTERS / Reuters

A giant boost to Rivian’s money position got here in Q2 with a three way partnership cope with Volkswagen (VWAGY), which announced plans to work with Rivian to create “next generation software-defined vehicle (SDV) architectures” to be utilized in each corporations’ future EVs.

In exchange, Volkswagen will invest an initial $1 billion in Rivian (which is recognized in the present Q2 money position) through an unsecured convertible note, with as much as $4 billion in additional investment staged through 2026 for a complete infusion of $5 billion.

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