Q3 24 EPS

$-1.08

MISS 17.39%

Est. $-0.92

Q3 24 Revenue

$874.0M

MISS 11.68%

Est. $989.6M

vs S&P Since Q3 24

+26.7%

BEATING MARKET

RIVN +47.1% vs S&P +20.5%

Market Reaction

Did RIVN Beat Earnings? Q3 2024 Results

Rivian delivered a bruising third quarter, missing on both top and bottom lines as a production disruption rippled through its financials. The electric vehicle maker posted a loss of $1.08 per share against a consensus estimate of $0.92, a 17.39% mis… Read more Rivian delivered a bruising third quarter, missing on both top and bottom lines as a production disruption rippled through its financials. The electric vehicle maker posted a loss of $1.08 per share against a consensus estimate of $0.92, a 17.39% miss, while revenue of $874.00 million fell 11.68% short of the $989.58 million analysts expected and represented a steep 34.6% decline from the year-ago period. The culprit was a shortage of a shared component within the Enduro motor system, which curtailed output to just 13,157 vehicles and forced Rivian to revise its full-year production target to 47,000 to 49,000 units, pressuring fixed-cost absorption and prompting a guidance revision for adjusted EBITDA to a loss of $2.83 billion to $2.88 billion. Still, management pointed to meaningful progress, including narrowing gross profit losses and a path to modest positive gross profit in Q4 2024, supported by premium variant mix shifts and a targeted 20% material cost reduction for R1 Dual-Motor vehicles, while the anticipated close of the Volkswagen joint venture in Q4 is expected to shore up the company's longer-term runway toward R2 production in 2026.

Key Takeaways

  • Production disruption due to Enduro motor component shortage negatively impacted deliveries and revenue
  • Revenue decline partially driven by timing of higher EDV deliveries in Q3 2023 and challenging consumer environment
  • Gross profit losses improved year-over-year due to lower delivery volume, partially offset by cost of revenue efficiency initiatives
  • LCNRV write-downs and firm purchase commitment losses decreased to $140 million from $452 million year-over-year
  • Operating expenses at lowest level in three years; stock-based compensation expense declined significantly
  • Second generation R1 material cost improvements from design changes, supplier negotiations, and lower raw material costs
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RIVN YoY Financials

Q3 2024 vs Q3 2023, source: SEC Filings

24/7 Wall St

RIVN Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 24 Q1 26

“This quarter we have made progress against our key objectives and have seen meaningful progress on our Gen 2 R1 cost structure due to the new technologies incorporated into the vehicle and manufacturing process. We are excited about the future and our midsize SUV, R2, which we believe will be a fundamental driver of Rivian's growth. We're also looking forward to closing our proposed joint venture with Volkswagen Group which is expected in the fourth quarter.”

— RJ Scaringe, Q3 2024 Earnings Press Release