Rivian Automotive(US:RIVN)2024-11-07 22:15Production 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]