Rivian (RIVN) hits a street bump in Q3, however issues are wanting up

EV maker Rivian (RIVN) launched its third-quarter monetary earnings Thursday after the market closed. With fewer deliveries within the quarter, Rivian’s income missed expectations. Nevertheless, the EV maker guarantees issues are wanting up from right here. Right here’s a breakdown of Rivian’s Q3 2024 monetary earnings

Earnings preview

Yesterday, Electrek posted a preview of what to look out for in Rivian’s third-quarter earnings. One of many greatest issues traders might be watching is Rivian’s prime line.

After a provide scarcity brought on Rivian to decrease its manufacturing objective for 2024, the corporate now expects to construct between 47,000 and 49,000 autos this yr, down from the earlier 57,000 goal.

With one other 13,157 EVs constructed final quarter, Rivian’s manufacturing whole reached 36,749 by means of September. To hit its goal, Rivian might want to construct one other 10,251 to 12,251 autos in This fall.

Regardless of this, Rivian nonetheless expects slight supply development over final yr, with between 50,500 and 52,000 models delivered in 2024, up from 50,122 in 2023.

In line with Estimize, Rivian is anticipated to report a lack of $0.96 per share in Q3 2024, an enchancment from the 1.19 loss per share final yr. Rivian is anticipated to report income of round $1 billion, which might be a 25% drop from the $1.34 billion generated in Q3 2023.

Rivian Q3 2024 earnings breakdown

Rivian reported third-quarter income of $874 million, an almost 35% drop from Q3 2023 and lacking expectations.

The corporate mentioned larger electrical supply van (EDV) deliveries for Amazon final yr was partly the explanation for the decrease top-line whole.

Rivian posted a gross revenue lack of $392 million, down from the $477 million loss final yr because of the decrease supply whole. In the meantime, working losses additionally fell to $1.17 billion, down from $1.44 billion in Q3 2023.

The corporate misplaced $39,130 on each car delivered in Q3 2024, which is up from $30,648 final yr and $32,705 in Q2 2024.

Rivian’s internet loss within the third quarter was $1.1 billion, down from $1.34 billion final yr with a $1.08 loss per share.

The EV maker confirmed it’s nonetheless on monitor for a optimistic gross revenue within the fourth quarter of 2024. Rivian’s CEO, RJ Scaringe, mentioned the corporate is seeing “significant progress” on its materials prices with new tech and manufacturing processes.

These enhancements are significant steps towards its next-gen R2, which can launch within the first half of 2026.

Scaringe mentioned Rivian believes R2 might be a “basic driver of Rivian’s development.” It’ll begin at $45,000, almost half the price of its present R1S and R1T fashions.

As soon as R2 manufacturing begins, Rivian expects the brand new EV will account for many of its output. The corporate plans to construct 155,000 R2 fashions yearly and about 85,000 R1S and R1Ts in Regular.

Rivian additionally believes its new alliance with Volkswagen might be “a landmark improvement for the trade.” The overall deal measurement is as much as $5 billion, which Rivian mentioned is a “significant monetary alternative.”

The deliberate investments along with Rivian’s present money and equivalents “are anticipated to supply the capital to fund Rivian’s operations by means of the ramp of R2 in Regular, in addition to the midsize platform in Georgia,” the corporate mentioned. This may set up a path to optimistic free money circulate and significant scale.

The corporate ended the quarter with $6.7 billion in money and equivalents, together with a $1 billion convertible observe from Volkswagen. Rivian reaffirmed its (revised) manufacturing and supply targets for 2024.

As a result of decrease manufacturing outlook, Rivian now expects an EBITDA lack of $2.83 billion to $2.88 billion, in comparison with the earlier steerage of a $2.7 billion loss.

Verify again for extra following Rivian’s earnings name with traders. We’ll publish updates under.