Rivian stumbles last quarter but is betting on a swift turnaround

Supply chain snags hit Rivian’s Q3 earnings, but the EV maker is keeping its sights set on long-term profitability. (2 min. read)

Rivian’s Q3 earnings came in below expectations, with revenue and production targets missing the mark. But with an eye on upcoming launches and strategic partnerships, Rivian is betting on a turnaround sooner rather than later.

Driving the news: Rivian reported Q3 revenue of $874 million, a 35% drop from last year’s $1.34 billion and below the projected $990 million. The dip was due to ongoing supply chain issues, including a shortage of a critical motor component that delayed deliveries.

  • The automaker produced 13,157 units in Q3 but only delivered 10,018 vehicles, a 36% decline year-over-year.

  • Rivian lowered its 2024 production forecast to between 47,000 and 49,000 units, down from its original target of 57,000.

By the numbers: Rivian’s losses per vehicle have climbed despite efforts to rein in production costs.

  • The company posted a net loss of $1.1 billion, an improvement from last year’s $1.37 billion.

  • Loss per vehicle spiked to $39,130, up from $30,648 last year, likely as a result of producing fewer units.

  • Rivian's cash reserves are $6.7 billion, including a $1 billion boost from Volkswagen. The funds are a safety net as it navigates the high-cost, high-stakes EV market.

What they’re saying: CEO RJ Scaringe is focused on Rivian's path to profit. The company still expects to have a positive gross profit by Q4, despite this quarter's shortfall. “This quarter we have made progress against our key objectives and have seen meaningful progress on our Gen 2 R1 cost structure due to the new technologies incorporated into the vehicle and manufacturing process,” he stated.

Behind the scenes: Rivian is seeking new supply partnerships to improve operations. This includes a 2026 deal with LG Energy Solution for U.S.-made battery cells. Rivian's $5 billion partnership with Volkswagen will also likely secure parts and tech to ramp up production as the EV market heats up.

Big picture: Rivian's outlook is bumpy for now. But, its long-term plan is clear: hit key profit goals and make the R2 model its main growth driver. With the $45,000 R2 crossover set to launch in 2026, Rivian is banking on the lower-cost model to attract a wider audience and ease the path to scale.

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