Here is what to observe for

Rivian (RIVN) will report its third-quarter earnings on Thursday after market shut. After a provide scarcity hampered manufacturing, traders are questioning if the EV maker will see its first income drop since turning into a public firm. Right here’s what to observe for in Rivian’s Q3 2024 earnings report.

What to anticipate from Rivian’s Q3 2024 earnings

Rivian delivered 10,018 automobiles within the third quarter, 27% fewer than the 13,790 handed over in Q2 2024.

After a provide scarcity started in Q3, impacting the R1T, R1S, and electrical supply vans (EDVs), Rivian minimize its manufacturing goal for the 12 months. As an alternative of the earlier 57,000, Rivian now expects to construct between 47,000 and 49,000 automobiles in 2024.

With one other 13,157 constructed final quarter, Rivian’s manufacturing complete reached 36,749 by means of the primary 9 months of 2024. This implies one other 12,251 to 10,251 EVs will must be made at its Regular, IL plant within the ultimate three months of the 12 months.

Regardless of the decrease manufacturing outlook, Rivian expects barely extra deliveries than final 12 months. Rivian plans to ship between 50,500 and 52,000 EVs in 2024, up from 50,122 in 2023.

Though throughout its first Investor Day in July, Rivian mentioned it nonetheless expects to attain its first revenue in This fall 2024, the provision scarcity might have thrown plans off.

In line with a current Bloomberg report, the scarcity was brought on by a miscommunication with its provider, Essex Furukawa, earlier this 12 months. The mishap has left Rivian with out sufficient copper windings to hit its preliminary manufacturing goal.

Rivian’s losses reached $1.46 billion within the second quarter, up from $1.2 billion in Q2 2023. The corporate misplaced $32,705 on each EV constructed final quarter. Will the losses enhance regardless of decrease output?

In preparation for its smaller, extra inexpensive R2, Rivian has been aggressively reducing prices and introducing new tech, which is enabling a lot decrease manufacturing prices.

Rivian’s CEO RJ Scaringe mentioned upgrades at its Regular, IL plant earlier this 12 months had been a “pivotal” second. Along with its superior new tech and improved provider relations, the change will allow “important value reductions,” in keeping with Scaringe.

Trying forward

The brand new tech will function the inspiration for Rivian’s next-gen R2. Rivian is anticipated to start R2 manufacturing at its Regular facility in early 2026.

Beginning at $45,00, the R2 is sort of half the price of Rivian’s present R1S and R1T, which is anticipated to assist drastically increase its market.

As soon as R2 manufacturing begins, Rivian expects the brand new EV will account for many of its output. The corporate plans to construct 155,000 R2 fashions yearly and about 85,000 R1S and R1Ts in Regular.

Rivian additionally acquired backing from Volkswagen by means of a brand new software program alliance for next-gen EVs. Volkswagen will make investments as much as $5 billion, $3 billion of which can go to Rivian and $2 billion for the three way partnership. Nonetheless, these are based mostly on efficiency targets.

In line with Estimize, Rivian is anticipated to report a lack of $0.96 per share in Q3 2024, an enchancment from the 1.19 loss per share final 12 months. Rivian is anticipated to report round $1 billion in income, which might be a 26% drop from the $1.34 billion in Q3 2023.

Rivian’s inventory is down over 53% in 2024 and over 90% from its all-time excessive set shortly after going public in November 2021.

Test again tomorrow after the market closes for a breakdown of Rivian’s third-quarter earnings.