Rivian (RIVN) reported third-quarter revenue that missed target and a bigger-than-expected loss, as the electric adventure vehicle maker suffered from a supplier parts problem. While the company now expects a larger-than-expected loss for the year, it maintains its full-year delivery forecast and still expects a “modest gross profit” in the fourth quarter.
For the quarter, Rivian reported revenue of $874 million, versus $980 billion expected by the Bloomberg consensus, down from the $1.34 billion it generated a year ago. The company reported an adjusted loss per share of $0.99 versus an expected loss of $0.92, and an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $757 million, compared to the expected $657.5 million .
Rivian shares fell in after-hours trading.
Last month, Rivian said it was “experiencing a production outage” due to a shortage of a shared part on the R1 and RCV (Rivian Commercial Van) platforms. The company said the impact on the supply shortage began in the third quarter of this year and “has become more acute in recent weeks and is ongoing.”
As a result of the disruption, Rivian announced today that it has revised its full-year adjusted EBITDA guidance to a loss of $2.82 billion to $2.87 billion, larger than the $2.7 billion loss it previously forecast .
Rivian maintained its annual production forecast of between 47,000 and 49,000 vehicles, down from the 57,000 it previously expected.
The company reaffirmed its annual delivery outlook of low single-digit growth compared to a year ago, which is expected to be between 50,500 and 52,000 vehicles.
Despite production and supply issues in the third quarter, Rivian said it expects to post “modest gross profit” in the fourth quarter of this year.
“This quarter, we made progress on our key objectives and saw meaningful progress on our Gen 2 R1 cost structure thanks to new technologies integrated into the vehicle and manufacturing process,” CEO RJ Scaringe said in a statement. “We are excited about the future and our mid-size SUV, R2, which we believe will be a fundamental driver of Rivian’s growth.”
In terms of cash cushion, Rivian said it ended the second quarter with $7.85 billion in cash and equivalents.
A big boost to Rivian’s cash position came in the second quarter with a joint venture agreement with Volkswagen (VWAGY), announcing plans to work with Rivian to develop “next-generation software-defined vehicle architecture (SDV).” that can be used in the future of both companies. EVs.
In return, Volkswagen will invest an initial $1 billion in Rivian (which will be included in the current second quarter cash position) via an unsecured convertible bond, with up to $4 billion in additional investments through 2026 for a total infusion of $5 billion.
