Rivian’s Q3 results were disappointing, with the electric vehicle (EV) manufacturer reporting revenue of $874 million, falling short of the $980 million projected by Bloomberg’s consensus estimate. This marks a decline from the $1.34 billion generated in the same period last year. Rivian’s adjusted loss per share came in at $0.99, surpassing the expected loss of $0.92, and its adjusted EBITDA loss was reported at $757 million, higher than the anticipated $657.5 million. This financial strain was primarily attributed to ongoing supply chain disruptions that have affected production. Despite the financial setbacks, Rivian maintained its full-year delivery forecast and expressed optimism for a modest gross profit in the fourth quarter.
Production Challenges Amid Supply Chain Issues
Rivian’s Q3 performance was notably impacted by a shortage of a shared component used in both the R1 and RCV (Rivian commercial van) platforms. The company acknowledged experiencing “production disruption” due to this supply shortage, which began in Q3 and has intensified in recent weeks. As a result, Rivian’s Q3 results prompted the company to revise its full-year adjusted EBITDA guidance to a projected loss of between $2.82 billion and $2.87 billion, up from the previously forecasted $2.7 billion. Although the production challenges led Rivian to lower its annual production guidance to between 47,000 and 49,000 vehicles—down from an earlier target of 57,000—the company remains confident in achieving its annual delivery outlook of around 50,500 to 52,000 vehicles, expecting low-single-digit growth over last year.
Strategic Outlook and Financial Position
Despite the current challenges, Rivian’s CEO RJ Scaringe highlighted the company’s progress on its second-generation R1 cost structure, citing new technologies in the vehicle and manufacturing processes as positive developments. Looking ahead, Rivian is excited about the launch of its midsize SUV, the R2, which is expected to be a key growth driver. Additionally, Rivian bolstered its cash reserves in Q2, ending with $7.85 billion in cash and equivalents, thanks to a joint venture deal with Volkswagen. This collaboration, aimed at developing “next generation software-defined vehicle (SDV) architectures,” involves an initial $1 billion investment from Volkswagen, with the potential for up to $5 billion in staged investments through 2026.
