Electric vehicle (EV) maker Rivian posted a significant revenue drop in the third quarter, marking its first quarterly revenue decline since going public three years ago. The company attributed the drop to a shortage of a key component used in its drive units, which impacted both production and revenue. EO RJ Scaringe told Reuters, “We weren’t able to build all the products and the mix of products that we planned, and so that affected us on the demand side and on the revenue side.”
Lowered Production Forecast –
Rivian had previously set a target of producing 57,000 vehicles this year, but the shortage forced the company to revise its full-year production forecast. The company now expects to produce between 47,000 and 49,000 vehicles in 2023, a decline compared to last year’s figures. However, Rivian is optimistic about 2024, projecting deliveries will rise to between 50,500 and 52,000 vehicles, up from 50,122 units in 2022.
Revenue Decline and Losses –
Rivian’s third-quarter revenue fell by 34.6%, bringing in $874 million. This performance missed analysts’ expectations, which had forecast revenue of $989.6 million. The company posted a net loss of $1.1 billion for the July-September quarter, slightly improving from the $1.37 billion loss it posted in the same period last year. Rivian’s cash reserves also dropped, with its cash and cash equivalents standing at $5.4 billion, down from $7.86 billion at the end of 2022.
Pressing Forward with New Partnerships and Production –
Despite the financial setbacks, Rivian continues to push forward with strategic initiatives. The company has secured a multiyear battery supply deal with LG Energy Solution’s Arizona subsidiary to support its upcoming R2 midsized SUV. This deal will also help Rivian meet domestic manufacturing requirements outlined in the Biden administration’s Inflation Reduction Act, which offers incentives for electric vehicle buyers.
Looking toward the future, Scaringe acknowledged the potential impacts of political changes, including the possibility of altered EV policies depending on the outcome of the next U.S. presidential election.
Source: Reuters
 maker Rivian posted a significant revenue drop in the third quarter, marking its first quarterly revenue decline since going public three years ago. The company attributed the drop to a shortage of a key component used in its drive units, which impacted both production and revenue. EO RJ Scaringe told Reuters, "We weren't able to build all the products and the mix of products that we planned, and so that affected us on the demand side and on the revenue side."){kind=link}