Rivian Sticks to Q4 Profit Goal Despite Production Setback
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Rivian Automotive Inc. expects to achieve a positive gross profit in the final three months of the year, sticking with the forecast despite a supply chain bottleneck that disrupted electric vehicle output.
The company is on track to meet the closely watched target thanks to a higher mix of premium models boosting revenue per vehicle sold and sales of regulatory credits, Rivian said in a statement Nov. 7 as it reported third-quarter results. The adjusted loss was 99 cents a share in the period, worse than the 92-cent average deficit estimated by analysts.
The results indicate the EV maker may only see limited impact from a key part shortage that forced it to halt production of the R1 battery-electric SUV and pickup models as well as its delivery van for Amazon.com Inc.
Amazon ranks No. 1 on the Transport Topics Top 100 list of the largest logistics companies in North America and No. 1 on the TT 50 list of the largest global freight carriers.
Rivian’s shares rose 1.8% in after-hours trading on Nov. 7.
While it maintained the fourth-quarter target, Rivian said the interruption would weigh on its profitability this year. The company now expects as much as negative $2.88 billion in adjusted earnings before interest, taxes, depreciation and amortization in 2024, slightly worse than the negative $2.8 billion expected by analysts.
A miscommunication between Rivian and the supplier of the component was responsible for the shortage, Bloomberg News reported last month.
The snag pushed Rivian in October to cut its full-year production target to no more than 49,000 EVs this year, down from an earlier projection of 57,000, in line with last year’s output. The company on Nov. 7 reaffirmed that forecast and its target of delivering as many as 52,000 vehicles this year.
Rivian saw losses widen to more than $39,000 per vehicle delivered in the most recent period, compared with $32,705 in the second quarter.
To meet its fourth-quarter profit goal, Rivian is counting on a jump in revenue from regulatory credits sold to other automakers to boost its bottom line. The company saw just $8 million worth of those transactions in the most recent period, down from $17 million in the second quarter.
Rivian has been struggling with production challenges all year amid a broader slowdown in demand for EVs. The manufacturer is working to cut costs ahead of the launch of the R2, a smaller, more-affordable electric SUV that’s expected to start production in the first half of 2026.
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