Rivian Stock – Rivian’s Q3 Delivery Numbers Fall 27%: What It Means for 2024 Production

Rivian Stock – Rivian (RIVN) has revised its production targets for 2024 downward, following a disappointing third-quarter delivery report that indicated a significant decline in vehicle handovers. The electric vehicle (EV) manufacturer now expects to build fewer cars next year than in 2023, signaling ongoing challenges in its production capabilities.

Q3 Deliveries and Production Overview

Rivian reported delivering 10,018 vehicles in the third quarter of 2024, a 27% drop from the 13,790 vehicles delivered in Q2 and a 26% decline from the 13,588 vehicles handed over in Q1. The decline was primarily attributed to a supply shortage that emerged during Q3, prompting Rivian to reassess its annual production goals.

Updated Production Targets

In light of the challenges, Rivian has lowered its production forecast for 2024 to between 47,000 and 49,000 vehicles, significantly down from its prior target of 57,000 vehicles. As of the end of September, Rivian had produced 36,749 vehicles this year, with 13,157 of those built in Q3 alone.

Delivery Guidance Remains Positive

Despite the production cuts, Rivian has maintained its delivery guidance for the year. The company anticipates a slight increase from the 50,122 vehicles delivered in 2023, aiming to deliver between 50,500 and 52,000 EVs in 2024. During its first Investor Day in July, Rivian reiterated its expectation to achieve its first gross profit in Q4 2024, despite ongoing supply chain issues affecting its R1 (R1T and R1S) and RCV platforms.

Financial Losses and Market Reaction

Rivian’s financial situation remains concerning, with losses widening to $1.46 billion in Q2 2024, up from $1.2 billion in the same quarter of 2023. The company recorded a loss of $32,705 on every vehicle produced in the last quarter. Following the announcement of its reduced production plans, Rivian’s stock dropped over 7% in pre-market trading on Friday, contributing to a staggering 50% decline in share value over the past year.

Upcoming Financial Results

Investors are advised to stay tuned for Rivian’s third-quarter financial results, set to be released on November 7, 2024. The upcoming report will provide further insights into the company’s financial health and the effectiveness of its revised strategies in navigating supply chain disruptions.

Rivian’s revised production outlook underscores the challenges facing the EV industry amid ongoing supply chain issues and rising operational costs. As the company strives to rebound and meet its delivery targets, investors and analysts alike will be watching closely to see if Rivian can stabilize its production and turn its financial performance around in the coming months.

FAQ About Rivian’s Production and Delivery