After the market closed on Tuesday, Rivian (RIVN) announced its third-quarter earnings, which showed impressive results as both production and deliveries increased. In the meanwhile, losses are decreasing.
With 15,564 units delivered in the third quarter, the EV manufacturer substantially exceeded expectations.
Delivery data for Rivian was more than double that of the previous year, with a 24% increase over Q2. During the quarter, the company produced 16,304 electric vehicles, an increase of 17% over Q2.
The cost of producing each vehicle is coming down as Rivian makes greater use of its production facility. In the second quarter, Rivian lost $32,595 on every vehicle it produced. It’s still a lot, but it’s a 50% decrease from the $67,329 loss per vehicle in the first quarter. It should be mentioned that it is still clearing off its backlog of early orders, many of which had prices that were around $20,000 less than what they are now.
Previously, the automaker will see a “very clear staircase” toward profitability, according to CEO RJ Scaringe. Among the few automakers who haven’t lowered prices this year is Rivian.
According to Rivian’s Q3 preliminary figures, revenue was between $1.29 billion and $1.33 billion, which is consistent with Wall Street’s $1.3 billion projection.
Rivian Q3 earnings results
As deliveries continued to move forward, Rivian generated $1.34 billion in revenue in Q3, exceeding projections of $1.12 billion in Q2.
The third quarter saw an improvement in gross profits. In Q3, Rivian reported a $477 million net loss, down from $917 million in Q2 of last year.
During the quarter, Rivian’s gross profit per vehicle delivered increased by around $2,000, with a loss of approximately $30,500 per vehicle.
The company said that the quarter’s cost-cutting and production scaling initiatives were the reason for the increase in gross profit.
Due to an increase in output, Rivian’s operating expenses increased to $693 million from $857 million in the previous year.
The EV manufacturer’s Q3 net loss increased from $1.12 billion to $1.3 billion. Still, it is a decrease from $1.7 billion in Q1 of last year and $1.4 billion in Q1.
Rivian has raised its production target for 2023 from 2,000 to 54,000 in light of the success made.
Additionally, the company reduced CapEx to $1.1 billion and increased adj. EBITDA outlook to ($4 billion) from ($4.2 billion).
Although somewhat less than $9.2 billion at the end of June, Rivian had 9.13 billion in cash and equivalents after the third quarter. The business possessed $10.25 billion in liquidity thanks to its revolving credit arrangement.