Electric vehicle manufacturer Rivien Sales fell short of Wall Street’s revenue expectations on Thursday, with sales falling short of expectations in the third quarter.
The Irvine-based company reported revenue of $874 million in the three months ending Sept. 30, which was lower than the $992 million expected by analysts, according to FactSet. The company reported revenue of $1.3 billion during the same period a year ago.
In a letter to shareholders, Rivian attributed the decline in revenue to a disruption in production and “a more challenging consumer environment.”
Rivian faces several obstacles, including supply chain issues, security issues and a slowdown in demand for electric vehicles from consumers worried about cost and convenient charging options.
Automakers are also bracing for more uncertainty after Republican Donald Trump won the 2024 presidential election this week, securing his return to the White House. Assetalthough he toned down his criticism of electric vehicles after Tesla Chief Executive Elon Musk considered ending the $7,500 federal tax credit for purchasing new electric vehicles .
The company reported a net loss of $1.1 billion, or $1.08 per share, in the third quarter, compared with a loss of $1.4 billion in the same period last year.
Rivian made its public debut in 2021 and saw its stock price drop 42% last year. Rivian stock closed at $10.04, up 3.35%, on Thursday.
The company’s stock price took a hit last month when the startup failed to meet delivery expectations for the third quarter and lowered its production forecast, apparently due to miscommunication with its supplier of copper windings. Rivian produced 13,157 vehicles at its Normal, Illinois, production facility and delivered 10,018 vehicles in the third quarter.
As the company tried to find a path to profitability, it signed high-profile deals with partners including Amazon and German automaker Volkswagen Group, which announced this year it would invest $5 billion in Rivian.
Known for their stylish electric adventure vehicles, Rivian pickup trucks and sport utility vehicles stand out on the road. However, for some consumers, vehicle prices are too high. The company’s R1S SUV starts at $75,900 and the R1T pickup truck starts at $69,900. Rivian plans to launch a cheaper, more compact electric SUV, known as the R2, in 2026.
Rivian announced Thursday that it has signed an agreement with LG Energy Solution to supply cylindrical battery cells for the R2.
“We are excited about the future and our mid-size SUV, the R2, which we believe will be a fundamental driver of Rivian’s growth,” RJ Scaringe, the company’s founder and chief executive, said in a statement. . He also added that the company looks forward to concluding its joint venture with Volkswagen in the fourth quarter.