Rivian third-quarter vehicle deliveries came in below forecasts and the EV startup lowered its full-year production guidance early Friday amid an ongoing "component shortage" in its vehicle production. RIVN stock dropped Friday.
Rivian announced Friday it delivered 10,018 vehicles in Q3 and produced 13,157 units at its manufacturing facility in Normal, Illinois.
Analyst consensus had Rivian third-quarter deliveries totaling around 12,670 units, according to FactSet.
Rivian Cuts Production Target
The company also said Friday that it is revising its annual production guidance to 47,000-49,000 vehicles. Rivian did reaffirm its annual delivery outlook of 50,500-52,000 vehicles, representing low single-digit growth as compared to 2023.
The EV startup said in the release Friday that it is "experiencing a production disruption due to a shortage of a shared component on the R1 and RCV platforms."
"This supply shortage impact began in Q3 of this year, has become more acute in recent weeks and continues," the company wrote.
A year ago, Rivian delivered 15,564 units while producing 16,304 vehicles in Q3 2023. Prior to Friday's release, Rivian had been targeting full-year production of 57,000 units.
Rivian Stock
RIVN stock fell 3.2% to 10.44 during market action on Friday. Rivian stock has tumbled more than 30% over the past two months and is trading below both its 200-day moving average and the 50-day line.
The stock is more than 80% below its IPO price of $78, according to MarketSurge analysis. Rivian Chief Executive RJ Scaringe has repeatedly sold shares since June, according to regulatory filings. Most recently, Scaringe sold 83,333 RIVN shares for about $969,587.79 on or around Sept. 23. The Rivian executive previously sold 83,333 shares for about $1,140,003.77 on Sept. 12. Scaringe has exercised RIVN stock options eight times since June, according to SEC filings.
Rivian Targets Gross Profit Per Vehicle In Q4
On Aug. 6, Rivian reported a worse-than-expected loss in the second quarter while revenue came in higher than analyst projections. Rivian delivered 13,790 vehicles in the second quarter and produced 9,612 units. Analysts had forecast second-quarter deliveries of 12,000.
The EV startup lost around $32,700 per vehicle in the second quarter. In Q1, Rivian lost more than $38,700 per vehicle delivered.
Rivian has affirmed in recent months its goal of positive gross profit per vehicle by the fourth quarter.
The startup has repeatedly stated its path to gross profit per unit delivered is via lower material costs, along with regulatory credits and other efforts.
Rivian's Volkswagen Deal
Meanwhile, Rivian in June announced a joint venture with Volkswagen. The $5 billion plan involves the global auto giant investing in the EV startup in order to leverage some of its engineering and designs.
The partnership will focus on software along with electrical architecture design and development, according to Rivian executives. Currently, the joint venture does not include battery technology, propulsion platforms, high-voltage systems or autonomous driving.
The two companies expect the deal will total $5 billion. This includes an initial $1 billion investment by Volkswagen and then plans for another $4 billion.
Scaringe said in the Q2 earnings release that the integration with Volkswagen is "moving along very well" and that Rivian expects to close the joint venture in the fourth quarter.
"The output from our joint venture will see Rivian's technology in vehicles all around the world, helping to create more consumer choice and speed up the transition away from fossil fuels," Scaringe said.
Rivian stock ranks 11th in IBD's Automakers industry group. RIVN has a 6 Composite Rating out of 99. Additionally, the stock has a 10 Relative Strength Rating and its EPS Rating is 20 out of 99.
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