Rivian reports a drop in sales
The net loss was $1.1 billion compared to $1.37 billion in the same period of the previous year, and $1.46 billion in the second quarter of 2024. Operating expenses dropped from 963 million dollars in Q3/2023 to 777 million dollars in Q3/2024. “Adjusted EBITDA for the third quarter of 2024 was -$757 million as compared to -$902 million for the same period last year,” Rivian states.
As reported, Rivian produced 13,157 vehicles and delivered 10,018 units from July to September. The carmaker recently lowered its annual production target for the year 2024 from 57,000 units to “between 47,000 and 49,000” vehicles after missing parts had paralysed production for months. However, Rivian’s delivery target remains unchanged.
Specifically, there has been a shortage of components used in Rivian’s Enduro motor, its single-motor-per-axle system used in the Dual-Motor variant of the R1. It is also used in the Tri-Motor variant. However, in that case, only one of the motors is an Enduro motor. As a result, Rivian expects “to produce more Tri-Motors and [single-motor] commercial vans as a mitigating factor to the supply constraint, with Amazon increasing its delivery order of vans in the fourth quarter of 2024.”
Nevertheless, the part shortage limited the supply of the R1 in the previous quarter, while a “challenging consumer backdrop” also negatively impacted sales in Q3/2024.
Rivian continues to expect to be back in the black in the current quarter. For one, it believes that its revenue per unit will increase due to non-vehicle revenues, such as service, and the higher price for premium variants, like the Tri-Motor version of the R1. Another reason for Rivian to remain positive is the recent deal with Volkswagen Group. The two companies agreed to jointly develop car software at the end of June and Rivian expects “to close the joint venture in the fourth quarter of this year.”
The carmaker states in its report: “Subject to the formation of the joint venture and certain milestones, the total deal size of approximately $5 billion in addition to our current cash, cash equivalents, and shortterm investments are expected to provide the capital to fund Rivian’s operations through the ramp of R2 in Normal, as well as the midsize platform in Georgia supporting our path to positive free cash flow and meaningful scale.”
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