Rivian reported Thursday income of $874 million within the third quarter — greater than 12% decrease than analysts’ estimates — because the EV startup struggled to resolve a element scarcity that disrupted manufacturing of its not too long ago overhauled flagship R1S and R1T autos.
Final month, Rivian lowered its annual manufacturing steerage to 47,000 to 49,000 autos as a result of “acute” provide downside for a element inside its Enduro motor, a single-motor-per-axle system utilized in Rivian R1 autos. The Enduro motor, which first debuted in autos in 2023, is emblematic of Rivian’s push to change into extra vertically built-in and fewer reliant on suppliers. On this case, the trouble to convey design in-house has negatively affected manufacturing.
“This has been a troublesome quarter for us due to a few of these provide chain or provide ramp challenges, and a kind of suppliers particularly has restricted our manufacturing fairly considerably,” founder and CEO RJ Scaringe mentioned. “And we’re working very, very arduous to deal with that. That is certainly one of our highest priorities by way of the enterprise, and we’re seeing that is actually a short-term difficulty, however it actually launched challenges.”
Whereas the provider downside was largely answerable for its income hit, there was nonetheless a niche between manufacturing and supply within the third quarter. Rivian mentioned final month it produced 13,157 autos and delivered simply 10,018 — a distinction that implies demand for its dear EVs was additionally an element.
The corporate now says it can revise its annual adjusted earnings steerage to between a $2.82 billion and $2.87 billion loss. Rivian had beforehand estimated an adjusted earnings lack of $2.7 billion.
Rivian’s third-quarter income of $874 million is 34.6% decrease than the $1.33 billion it generated in the identical interval final 12 months. The corporate mentioned revenues from the sale of regulatory credit have been $8 million for the quarter. Rivian was capable of scale back working bills, which helped it slim losses to $1.1 billion.
The gloomy income numbers, pushed by decrease manufacturing and deliveries, come as Rivian makes an attempt to rein in prices, enhance effectivity, and market the subsequent technology of its flagship R1T pickup truck and R1S SUV in addition to industrial vans, that are primarily bought to Amazon. Rivian mentioned it has began manufacturing of a tri-motor variant of the R1 autos — a costlier model — that might present some capital and provide chain reduction.
Rivian mentioned it additionally continues to make progress on its next-generation R2 platform, a midsize SUV that Scaringe mentioned “can be a basic driver of Rivian’s development.”
Rivian introduced Thursday a battery provider partnership with LG Power Resolution (LGES) to provide batteries for the R2. Underneath the settlement, LGES will provide 4695 cylindrical battery cells, which can be produced at a manufacturing unit in Queen Creek, Arizona.
Rivian mentioned it expects R2 manufacturing to start within the first half of 2026.
