Core Insights - Rivian Automotive and Lucid Group are facing increasing challenges as they attempt to convince investors of a profitable future amidst difficult market conditions [1][2][3] Company Performance - Both companies are expected to report significant revenue growth and reduced adjusted earnings losses in their upcoming third-quarter results, driven by record U.S. EV sales [2][12] - Rivian delivered 13,201 vehicles in Q3, a 32% increase year-over-year, while Lucid delivered 4,078 units, up 47% from 2,781 units in Q3 2024 [12] - Rivian anticipates an adjusted EPS loss of 72 cents on revenue of $1.5 billion, compared to a loss of 99 cents on revenue of $874 million a year earlier [13] - Lucid is expected to report a $2.27 adjusted EPS loss, down from $2.80 a year earlier, with revenue projected to increase by approximately 90% to $379.1 million [15] Market Challenges - Both companies have reduced vehicle production guidance due to challenging market conditions, including increased costs from tariffs and a slowdown in EV sales forecasts [3][4] - The elimination of federal EV purchase incentives, which previously provided up to $7,500, is expected to negatively impact sales and profits [4][8] - Rivian has cut its expected earnings from credit sales from $300 million to $160 million, leading to a lowered gross profit guidance for the year [5] Future Growth Opportunities - Rivian's future relies heavily on the upcoming "R2" vehicle, expected to launch in the first half of next year, which aims to reduce production costs and complexity [19][20] - Lucid is focusing on the launch of its Gravity SUV and a future midsize vehicle platform to expand its market reach [24][25] - Both companies are promoting their technological advancements, including Rivian's $5.8 billion deal with Volkswagen for software and electrical architecture, and Lucid's partnership with Uber for deploying Gravity SUVs equipped with autonomous technology [23][26] Financial Outlook - Rivian is expected to report a gross loss of $39 million in Q3, while Lucid's gross loss is projected at $255 million [16] - Analysts are closely monitoring gross profit improvements as a key indicator of future profitability for both companies [15][16]