Rivian reported another loss late Thursday in its third-quarter results, while also reaffirming its 2024 delivery outlook, as well as its goal for positive gross profit per vehicle delivered in Q4. RIVN shares jumped Friday.
Rivian announced a net loss of $1.08 per share in Q3 — compared to a $1.44 per share loss a year ago — while revenue totaled $874 million, down 34% vs. Q3 2023. Total revenue from the sale of regulatory credits was $8 million for the quarter, according to the after-hours report.
Rivian ended the third quarter with $6.739 billion in cash, cash equivalents and short-term investments. This includes $1 billion of an unsecured convertible note issued to Volkswagen, according to Rivian. At the end of Q2, Rivian had $7.867 billion in cash, cash equivalents and short-term investments.
Rivian added Thursday it remains "on track" for positive gross profit per vehicle by the fourth quarter. The startup has repeatedly stated its path to gross profit per unit delivered is primarily by reducing material costs, along with regulatory credits and other efforts.
Rivian lost around $39,130 per vehicle in Q3, up from $32,700 per vehicle in the second quarter. In Q1, Rivian lost more than $38,700 per vehicle delivered.
The EV startup also said Thursday that Q3 operating expenses decreased to $777 million, compared to $963 million in the same period last year.
Rivian also announced Thursday a strategic supply agreement with LG Energy Solution to power its next-generation midsize electric vehicle platform. LG Energy Solution will supply 4695 cylindrical battery cells to Rivian.
Rivian stock edged down early before advancing 5.4% to 10.59 during market trade on Friday. RIVN ended the week up 4% despite plummeting 8% on Wednesday.
EVs And Trump
Meanwhile, Tesla stock advanced 14.8%, making a move to 15-month highs Wednesday, after former President Donald Trump defeated Vice President Kamala Harris in the race for the White House. A Trump presidency was seen as a "huge positive" for Tesla and Chief Executive Elon Musk.
Wedbush Securities analyst Dan Ives wrote Wednesday that a Trump presidency could be an "overall negative for the EV industry," with the potential for EV rebates and tax incentives to be repealed.
"Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players," Ives wrote.
Lowering Production Guidance
Rivian already reduced its full-year production guidance as it missed third-quarter vehicle deliveries forecasts amid an ongoing "component shortage" in its vehicle production.
Rivian announced in early October it delivered 10,018 vehicles in Q3 and produced 13,157 units at its manufacturing facility in Normal, Ill. Analyst consensus had Rivian third-quarter deliveries totaling around 12,670 units, according to FactSet. A year ago, Rivian delivered 15,564 units while producing 16,304 vehicles.
Rivian on Oct. 4 said it was revising its annual production guidance to 47,000-49,000 vehicles. Rivian did reaffirm its annual delivery outlook of 50,500 to 52,000 vehicles, representing low single-digit growth compared to 2023. The company had been targeting full-year production of 57,000 units.
The EV startup said 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.
Bloomberg then reported last month there was a miscommunication earlier in 2024 between Rivian and supplier Essex Furukawa, a unit of Superior Essex. This resulted in Rivian not having access to copper windings, a key component for Rivian's electric motors.
On Thursday, Rivian said it is also revising down its annual adjusted EBITDA guidance to a loss of between $2.825 billion and $2.875 billion, due to this disruption.
Rivian And VW
The EV startup in June announced a $5 billion joint venture with Volkswagen that involves the global auto giant investing in the EV startup in order to leverage some of its engineering and designs. Rivian expects the joint venture to close in Q4.
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.
Volkswagen recently relaunched the Scout Motors brand making all-electric SUVs and pickup trucks that bear a marked resemblance to Rivian's vehicles. Scout engineered and designed the vehicles in Michigan, and plans to build them at a new factory in South Carolina.
Rivian Stock
RIVN shares have tumbled 57% in 2024, and are currently below both their 200-day moving average and the 50-day line. Rivian stock is about 87% below its IPO price of $78, according to MarketSurge analysis.
Rivian Chief Executive RJ Scaringe has also repeatedly sold shares of RIVN 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.
Ives wrote Friday that although he remains "confident in the long-term Rivian vision, it will take some serious strides for the company to regain trust in the short-term vision in the eyes" of investors.
Ives has an outperform rating on RIVN stock with a 20 price target.
Rivian stock has a 7 Composite Rating out of 99. Additionally, the stock has an 8 Relative Strength Rating and its EPS Rating is 19 out of 99.
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