Rivian reported a third-quarter revenue of $874 million on Thursday, falling more than 12% short of analyst expectations, as the electric vehicle (EV) manufacturer grappled with a persistent component shortage that hindered production of its R1S and R1T models.
The company recently adjusted its annual production target to 47,000–49,000 vehicles, attributing the decline to supply issues with a key component in its Enduro motor. The Enduro system, a single-motor-per-axle setup featured in Rivian’s R1 lineup since 2023, is part of the company’s strategy to enhance vertical integration and reduce dependency on third-party suppliers. However, Rivian’s efforts to bring certain designs in-house have created temporary obstacles.
“This quarter has been particularly challenging due to supply chain issues, with one of our suppliers significantly limiting production,” said RJ Scaringe, Rivian’s founder and CEO. “Resolving this issue is a top priority for us. While we view this as a short-term setback, it has undeniably posed difficulties for our operations.”
In addition to supply constraints, Rivian faced a production-to-delivery gap in the third quarter, signaling a potential impact on demand for its high-end EVs. Last month, the company reported producing 13,157 vehicles but delivering only 10,018, suggesting that pricing may also be affecting customer orders.
Rivian has adjusted its annual earnings guidance, now anticipating an adjusted loss of $2.82 billion to $2.87 billion, up from a previous estimate of $2.7 billion. Revenue for the third quarter declined 34.6% year-over-year, down from $1.33 billion in the same period last year. However, the company’s operating cost reductions helped narrow its net loss to $1.1 billion. Regulatory credit sales contributed $8 million in revenue for the quarter.
Amid these financial challenges, Rivian is focused on cost management, operational efficiency, and the promotion of its upcoming R1T pickup and R1S SUV models. The company recently began production of a tri-motor version of its R1 vehicles, a premium offering that could help stabilize revenue and supply chain issues. Additionally, Rivian continues to advance its next-generation R2 platform, a midsize SUV that Scaringe describes as a “core driver” for the company’s future growth.
On Thursday, Rivian also announced a partnership with LG Energy Solution (LGES), securing 4695 cylindrical battery cells for the R2 line. These batteries will be produced at LGES’s Queen Creek, Arizona facility, supporting Rivian’s goal to launch R2 production by early 2026.
As Rivian navigates supply chain hurdles and financial pressures, its strategic moves—including product diversification and supplier partnerships—are aimed at positioning the company for long-term growth in the EV market.
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