Although the markets have received Donald Trump’s election positively, an analyst is warning that the power shift might not be ideal for electric vehicle manufacturer Rivian (NASDAQ: RIVN). Particularly, Bank of America (NYSE: BAC) has downgraded Rivian stock from ‘Buy’ to ‘Neutral’ and reduced its price target from $20 to $13, citing potential bearish sentiments from possible Trump policies on the EV space. In an investor note on November 8, BofA analyst John Murphy stated that the decision reflects potent ...

California-based electric vehicle (EV) company Rivian Automotive (RIVN) reported its third-quarter 2024 results, which fell short of Wall Street’s expectations. The EV maker faced significant challenges, particularly in production and supply chain disruptions, which impacted its revenues and profitability. CEO RJ Scaringe described the quarter as challenging, and the company widened its full-year loss expectations. On a slightly positive note, management reaffirmed its 2024 delivery outlook and maintained i ...

Financial Data and Key Metrics Changes - In Q3 2024, Rivian produced 13,157 vehicles and delivered 10,018 vehicles, generating $874 million in revenue [16] - Total gross profit was negative $392 million, with a gross loss per vehicle delivered of approximately $39,100 [18] - GAAP operating expenses were $777 million, the lowest level in three years, reflecting cost-saving initiatives [19] Business Line Data and Key Metrics Changes - Demand for R1 vehicles was negatively impacted by production disruptions and a challenging consumer backdrop [17] - The introduction of the second generation R1 platform is expected to enable a 20% material cost reduction by Q4 2024 compared to Q1 2024 [19] - Rivian reaffirmed its annual production guidance of 47,000 to 49,000 vehicles and delivery outlook of 50,500 to 52,000 vehicles for 2024 [20] Market Data and Key Metrics Changes - The R1S is the most popular SUV over $70,000 in California, indicating strong market demand [14] - Rivian anticipates approximately $300 million in regulatory credit sales for 2024, which will contribute to revenue growth [20] Company Strategy and Development Direction - Rivian is focused on ramping up the Gen 2 platform and addressing supply chain challenges as a short-term issue [8][9] - The R2 program is on track for a 2026 launch, with a target price starting at $45,000, aiming to capture market share similar to R1 [10][24] - The joint venture with Volkswagen is progressing well, with expectations for significant capital support for Rivian's growth [13][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, emphasizing the importance of creating compelling products to drive electrification [14] - The company is addressing component shortages impacting production and expects to recover capacity in the coming weeks [51] - Rivian aims for a positive gross profit in 2025, although not every quarter is expected to be profitable [56] Other Important Information - Rivian's cash, cash equivalents, and short-term investments total $6.7 billion, which will support its capital roadmap for growth [24] - The company is implementing lean manufacturing principles to improve operational efficiency [43][46] Q&A Session Summary Question: What is the improvement in gross profit and implications for unit economics on R1? - Management noted that revenue per unit growth, driven by regulatory credit sales and improved average selling prices, will enhance gross profit [27] Question: What percentage of volume is pre-ordered versus sold out of dealer inventory? - Lease penetration was 42%, and most customers benefiting from the $7,500 tax credit are in the leasing segment [34] Question: Can you decompose the third quarter COGS per unit? - Management indicated that Q3 was challenging due to supplier issues, but Q4 material costs are projected to be 20% lower than Q1 [39] Question: What is the status of the Volkswagen joint venture? - The joint venture is expected to close before year-end, with defined milestones for financing [80] Question: What are the expectations for regulatory credits in 2024? - Management expects to achieve $300 million in regulatory credit sales due to increased underlying value and sales opportunities [53]

Supply agreement will last over five years and total 67GWh. 4695 cells, offering a long range and high safety, will be produced in the U.S. Batteries will power Rivian's R2 model for the North American market.SEOUL, South Korea, Nov. 7, 2024 /PRNewswire/ -- LG Energy Solution (KRX: 373220) today announced that LG Energy Solution Arizona, a fully owned subsidiary of LG Energy Solution, has signed a supply agreement with Rivian, a U.S.-based automotive manufacturer.Under the agreement, LG Energy Solution wil ...

Rivian Automotive (RIVN) came out with a quarterly loss of $1.03 per share versus the Zacks Consensus Estimate of a loss of $0.89. This compares to loss of $1.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -15.73%. A quarter ago, it was expected that this a manufacturer of motor vehicles and passenger cars would post a loss of $1.09 per share when it actually produced a loss of $1.21, delivering a surprise of -11.01%.Over ...

Production and Delivery - Rivian produced 36,749 vehicles and delivered 37,396 vehicles in the nine months ended September 30, 2024[89] - Rivian's Normal Factory expansion aims to increase annual production capacity to 215,000 units[94] - Rivian experienced a production disruption in Q3 2024 due to a shortage of a component within its Enduro motor system[99] Partnerships and Collaborations - Amazon placed an initial order of 100,000 EDVs globally, with potential modifications[88] - Rivian announced a joint venture with Volkswagen Group in June 2024 to expand market applications for its software and electrical architecture[95] - The company expects to receive an additional $4.0 billion from Volkswagen Group, including $2.0 billion of direct equity investment and $2.0 billion related to the planned Rivian and VW JV[122] Revenue and Financial Performance - Revenues for the three months ended September 30, 2024 decreased by 35% to $874 million compared to $1,337 million in the same period in 2023, primarily due to a 36% decrease in delivery volume to 10,018 vehicles[106] - Revenues for the nine months ended September 30, 2024 increased by 4% to $3,236 million compared to $3,119 million in the same period in 2023, driven by a 3% increase in delivery volume to 37,396 vehicles[106] - Gross profit losses for the three months ended September 30, 2024 decreased by 18% to $392 million compared to $477 million in the same period in 2023, primarily due to lower delivery volume[108] - Gross profit losses for the nine months ended September 30, 2024 decreased by 4% to $1,370 million compared to $1,424 million in the same period in 2023, primarily due to reductions in materials' costs per unit[112] - The company expects to increase non-vehicle revenue, including the sale of regulatory credits, over time[107] Research and Development - R&D expenses for the three months ended September 30, 2024 decreased by 34% to $350 million compared to $529 million in the same period in 2023, primarily due to a $74 million decrease in stock-based compensation expense[112] - R&D expenses for the nine months ended September 30, 2024 decreased by 16% to $1,239 million compared to $1,469 million in the same period in 2023, primarily due to a $142 million decrease in engineering, design, and development costs[113] - The company plans to continue investing in future vehicle platforms, new in-vehicle technologies, and further vertical integration of manufacturing[114] Sales, General, and Administrative Expenses - SG&A expenses for the three months ended September 30, 2024 remained relatively flat at $427 million compared to $434 million in the same period in 2023, with a $40 million decrease in stock-based compensation expense offset by a $23 million increase in depreciation and amortization[114] - SG&A expenses for the nine months ended September 30, 2024 increased by 12% to $1,419 million compared to $1,265 million in the same period in 2023, primarily due to a $76 million increase in depreciation and amortization and a $73 million increase in payroll and related expenses[115] Interest and Cash Flow - Interest income decreased to $95 million for the three months ended September 30, 2024, compared to $126 million in the same period in 2023, a decrease of 25%[116] - Interest expense increased to $87 million for the three months ended September 30, 2024, compared to $55 million in the same period in 2023, an increase of 58%[116] - Cash and cash equivalents decreased to $5,396 million as of September 30, 2024, from $7,857 million as of December 31, 2023[121] - Total liquidity decreased to $8,105 million as of September 30, 2024, from $10,468 million as of December 31, 2023[121] - Net cash used in operating activities decreased to $2,899 million for the nine months ended September 30, 2024, compared to $3,759 million in the same period in 2023[131] - Net cash used in investing activities decreased to $594 million for the nine months ended September 30, 2024, compared to $1,908 million in the same period in 2023[131] - Net cash provided by financing activities was $1,032 million for the nine months ended September 30, 2024, primarily driven by the issuance of the 2026 Convertible Note[131] Incentives and Funding - Rivian received an incentive package valued at up to $827 million from the State of Illinois in May 2024[101] - The company received $75 million in October 2024 as part of an incentives package valued at up to $827 million from the State of Illinois[121] - The company issued a $1.0 billion principal amount of a 2026 Convertible Note in June 2024, which will automatically convert into shares of Class A common stock on December 1, 2024[122] Product Development and Launch - Rivian unveiled its midsize platform (MSP) in Q1 2024, with R2 production expected to start in 2026[91] - Rivian's Connect+ subscription-based streaming and connectivity service launched in Q4 2024[97] Charging Infrastructure - Rivian vehicles gained access to over 15,000 Tesla Superchargers in the U.S. in Q1 2024[96] - Rivian plans to open its Rivian Adventure Network to non-Rivian EVs in late 2024[96]

Rivian reported Thursday revenue of $874 million in the third quarter — more than 12% lower than analysts estimates — as the EV startup struggled to resolve a component shortage that disrupted production of its recently overhauled flagship R1S and R1T vehicles. Last month, Rivian lowered its annual production guidance to 47,000 to 49,000 vehicles due to the “acute” supply problem for a component within its Enduro motor, a single-motor-per-axle system used in Rivian R1 vehicles. The Enduro motor, which first ...

Workers assemble second-generation R1 vehicles at electric auto maker Rivian's manufacturing facility in Normal, Illinois, U.S. June 21, 2024.Rivian Automotive cut its earnings forecast for the year after missing Wall Street's third-quarter expectations, including a significant miss in revenue.Here's how the company performed in the quarter, compared with average estimates compiled by LSEG:Loss per share: 99 cents adjusted vs. a loss of 92 cents expectedRevenue: $874 million vs. $990 million expectedRivian ...

R I V I A N Q3 2024 Rivian Shareholder Letter � Key Highlights | --- | --- | |-----------------------------------------------|-------| | | | | delivery outlook of 50,500 to 52,000 vehicles | | | --- | |-------------------------------------------------------------------| | | | On track for positive gross profit for the fourth quarter of 2024 | 20% increase in demo drives compared to Q2'24 Launched R1 Tri-Motor configuration with 2.9s 0-60mph and range up to 405 miles Majority of customers subscribed to Conne ...

Electric vehicle (EV) maker Rivian Automotive Inc. (NASDAQ: RIVN) is set to release its third-quarter earnings report on November 7, marking a critical moment for the company as it grapples with substantial headwinds.Currently trading at around $9.64, Rivian’s stock has suffered a steep 55% decline year-to-date, attributed to lower-than-expected Q3 deliveries, mounting losses, and slowing demand amid intensifying competition. Rivian five-day stock price: Google FinanceThis earnings report, therefore, could ...