Rivian Revenue Falls Short as In-House Motor Supply Crisis Bites
Rivian misses third-quarter revenue estimates due to a severe component shortage in its in-house Enduro motor. The EV maker also faces a growing gap between production and deliveries, prompting wider annual loss projections.
Rivian reports $874 million in third-quarter revenue, missing analyst estimates by over 12% as an acute component shortage disrupts production of its R1S and R1T vehicles. The problem stems from a supplier for the company's in-house Enduro motor, a system designed to reduce reliance on outside vendors but which now forces Rivian to lower its annual production guidance to between 47,000 and 49,000 vehicles.
While the supply chain issue accounts for much of the revenue hit, a noticeable gap between production and deliveries suggests softer demand for its premium electric vehicles. Rivian produces 13,157 vehicles in the quarter but delivers only 10,018, leading the company to revise its annual adjusted earnings guidance to a loss of $2.82 billion to $2.87 billion.
Despite the gloomy financial picture, Rivian takes steps to mitigate the damage by starting production of a higher-priced tri-motor variant of its flagship vehicles. The company also continues to develop its next-generation R2 platform and reduces operating expenses to narrow its quarterly net loss to $1.1 billion.