Rivian rides on EV tax-credit rush to beat revenue estimate, expects lower tariff costs

Core Insights - Rivian Automotive exceeded third-quarter revenue expectations, driven by strong vehicle deliveries as consumers rushed to take advantage of a federal tax incentive before its expiration [1][2] - The company's shares rose over 4% following the announcement of its earnings [1] Revenue and Deliveries - Rivian delivered 13,201 vehicles in the third quarter, marking a 32% increase year-over-year [2] - The company slightly lowered its full-year delivery forecast to approximately 42,500 units due to anticipated lower demand after the $7,500 federal tax credit ends [2][4] - Third-quarter revenue reached $1.56 billion, surpassing analysts' expectations of $1.5 billion [4] Financial Performance - Rivian reported an adjusted net loss of 65 cents per share, which was better than the expected loss of 72 cents per share [4] Market Trends - Early indicators suggest a slowdown in U.S. EV sales in October following a record-setting September, with average prices rising to nearly $65,021 [3] - The increase in prices indicates that October buyers are more committed to EV adoption rather than seeking bargains [3] Cost Management - Rivian anticipates a reduction in tariff costs for newly built vehicles, expected to decrease from about $2,000 to a few hundred dollars per vehicle due to policy changes [4] Future Plans - The company is on track to begin production of its more affordable R2 SUV in the first half of next year [5] - Rivian laid off approximately 4.5% of its workforce, over 600 employees, and settled a class-action lawsuit for $250 million as it focuses on the R2 launch [5] - Rivian launched Mind Robotics, an industrial robotics startup, with $110 million in external funding [5]