Rivian on Thursday reported third-quarter revenue of $874 million, more than 12% lower than analysts expected. This comes as the EV startup struggles to resolve a parts shortage that has hampered production of its recently overhauled flagship vehicles, the R1S and R1T.
Last month, Rivian lowered its annual production outlook to 47,000 to 49,000 units due to “severe” supply issues with components in the Enduro motor, a single-motor-per-axle system used in the Rivian R1 vehicle. It was lowered to The Enduro motor, which will be installed in vehicles for the first time in 2023, represents Rivian’s commitment to increasing vertical integration and reducing dependence on suppliers. In this case, efforts to bring design in-house are having a negative impact on production.
“This was a tough quarter for us this year due to some of the supply chain and supply growth challenges, and one of those suppliers in particular “We have severely limited production.” “And we are working very hard to address that. This is one of our top priorities on the business side and we recognize that this is really a short-term issue. However, there have certainly been challenges.”
The hit to revenue was mainly due to supplier issues, but there remained a gap between production and deliveries in the third quarter. Last month, Rivian said it produced 13,157 vehicles and delivered just 10,018, suggesting the difference was also due to demand for its expensive EVs.
The company has now announced that it is revising its full-year adjusted profit outlook to a loss of $2.87 billion from $2.82 billion. Rivian had previously estimated its adjusted earnings loss to be $2.7 billion.
Rivian’s third-quarter revenue was $874 million, down 34.6% from $1.33 billion in the year-ago period. The company announced revenue from regulatory credit sales of $8 million in the quarter. Rivian was able to reduce operating expenses and narrow its losses to $1.1 billion.
As Rivian looks to contain costs, improve efficiency and sell the next generation of its flagship R1T pickup truck, R1S SUV and commercial vans, which are sold primarily to Amazon, production and delivery volumes will increase. Sales are in a bleak situation due to the decline. . Rivian said it has started production of a three-motor version of its R1 vehicle (a more expensive version), which could lead to capital and supply chain relief.
Rivian also said it continues to advance its next-generation R2 platform for midsize SUVs, which Scaringe said “will be a fundamental driver of Rivian’s growth.”
Rivian on Thursday announced a battery supplier partnership with LG Energy Solutions (LGES), which will supply batteries for the R2. Under the agreement, LGES will supply 4,695 cylindrical battery cells, which will be manufactured at its Queen Creek, Arizona, facility.
Rivian said it expects production of the R2 to begin in the first half of 2026.
