Rivian Releases Q3 Production and Delivery Figures, Updates 2024 Annual Production Outlook and Sets Date for Third Quarter 2024 Results

Rhea-AI Summary

Rivian Automotive (NASDAQ: RIVN) has released its Q3 2024 production and delivery figures, along with an updated 2024 annual production outlook. The company produced 13,157 vehicles and delivered 10,018 vehicles in Q3. However, Rivian is facing a production disruption due to a shortage of a shared component on the R1 and RCV platforms, which began in Q3 and has intensified recently.

As a result, Rivian has revised its annual production guidance to between 47,000 and 49,000 vehicles. The company is reaffirming its annual delivery outlook of low single-digit growth compared to 2023, expecting deliveries in the range of 50,500 to 52,000 vehicles. Rivian will release its Q3 2024 financial results on November 7, 2024, after market close, followed by an audio webcast at 5:00 p.m. ET to discuss performance and business outlook.

Positive

• Produced 13,157 vehicles in Q3 2024
• Delivered 10,018 vehicles in Q3 2024
• Reaffirmed annual delivery outlook with low single-digit growth compared to 2023

Negative

• Production disruption due to shortage of shared component on R1 and RCV platforms
• Revised annual production guidance downward to 47,000-49,000 vehicles

Insights

Financial Analyst

Rivian's Q3 production and delivery figures reveal significant challenges. The company produced 13,157 vehicles but delivered only 10,018, indicating potential inventory buildup or logistics issues. The supply shortage of a shared component is particularly concerning, as it affects both R1 and RCV platforms, leading to a downward revision of the annual production guidance to 47,000-49,000 vehicles.

The reaffirmation of the annual delivery outlook with low single-digit growth (50,500-52,000 vehicles) compared to 2023 suggests Rivian is prioritizing deliveries over production. This strategy may help maintain cash flow but could strain relationships with suppliers and impact future production scalability.

Investors should closely monitor the upcoming Q3 financial results on November 7 for insights into how these production challenges are affecting Rivian's financial health, cash burn rate and progress towards profitability. The component shortage and production disruption could have ripple effects on Rivian's ability to meet customer demand and maintain its competitive position in the EV market.

Supply Chain Expert

The supply shortage affecting Rivian's production is a critical issue that highlights vulnerabilities in the company's supply chain. The fact that a single shared component can disrupt production across multiple platforms (R1 and RCV) indicates a lack of supply chain diversification and risk mitigation strategies.

This situation underscores the importance of:

• Developing alternative sourcing strategies
• Improving inventory management
• Enhancing supplier relationships
• Implementing more robust forecasting and planning systems

The acute nature of the shortage suggests Rivian may need to reevaluate its just-in-time manufacturing approach and consider maintaining higher safety stock levels for critical components. Long-term, Rivian should focus on vertical integration or strategic partnerships to secure key components and reduce dependency on single suppliers. This disruption could lead to increased costs and potential loss of market share if not addressed promptly and effectively.

IRVINE, Calif.--(BUSINESS WIRE)-- Rivian Automotive, Inc. (NASDAQ: RIVN) today announced production and delivery totals for the quarter ending September 30, 2024. The company produced 13,157 vehicles at its manufacturing facility in Normal, Illinois and delivered 10,018 vehicles during the same period.

Rivian is experiencing a production disruption due to a shortage of a shared component on the R1 and RCV platforms. This supply shortage impact began in Q3 of this year, has become more acute in recent weeks and continues. As a result of the supply shortage, Rivian is revising its annual production guidance to be between 47,000 and 49,000 vehicles. The company is also reaffirming its annual delivery outlook of low single digit growth as compared to 2023, which it expects to be in a range of 50,500 to 52,000 vehicles.

The company also announced that on November 7, 2024, after market close, it will release its third quarter 2024 financial results. Rivian will host an audio webcast at 5:00 p.m. ET the same day to discuss the performance and outlook for the business. The live webcast will be available at https://edge.media-server.com/mmc/p/2m7m5wyb and a replay will be available for four weeks at www.rivian.com/investors following the webcast.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our annual production and delivery outlook; expectations regarding the current supply shortage; and expectations regarding our future growth. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements use these words or expressions.

We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements, including, but not limited to, the important factors discussed in Part II, Item 1A, “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and our other filings with the Securities and Exchange Commission. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

About Rivian:

Rivian (NASDAQ: RIVN) is an American automotive manufacturer that develops and builds category-defining electric vehicles and accessories. The company creates innovative and technologically advanced products that are designed to excel at work and play with the goal of accelerating the global transition to zero-emission transportation and energy. Rivian vehicles are built in the United States and are sold directly to consumer and commercial customers. The company provides a full suite of services that address the entire lifecycle of the vehicle and stay true to its mission to keep the world adventurous forever. Whether taking families on new adventures or electrifying fleets at scale, Rivian vehicles all share a common goal — preserving the natural world for generations to come.

Learn more about the company, products, and careers at www.rivian.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241004708054/en/

Investors: ir@rivian.com

Media: Harry Porter, media@rivian.com

Source: Rivian Automotive, Inc.

FAQ

How many vehicles did Rivian (RIVN) produce in Q3 2024?

Rivian (RIVN) produced 13,157 vehicles at its manufacturing facility in Normal, Illinois during Q3 2024.

What is Rivian's (RIVN) revised annual production guidance for 2024?

Rivian (RIVN) has revised its 2024 annual production guidance to between 47,000 and 49,000 vehicles due to a supply shortage.

When will Rivian (RIVN) release its Q3 2024 financial results?

Rivian (RIVN) will release its Q3 2024 financial results on November 7, 2024, after market close, followed by an audio webcast at 5:00 p.m. ET.

What is causing the production disruption for Rivian (RIVN)?

Rivian (RIVN) is experiencing a production disruption due to a shortage of a shared component on the R1 and RCV platforms, which began in Q3 and has become more acute in recent weeks.