Electric vehicle maker Rivian falls short of third-quarter sales forecasts

Electric vehicle maker Rivian missed Wall Street's sales expectations on Thursday as third-quarter sales came in lower than expected.

The Irvine-based company reported revenue of $874 million in the three months ended Sept. 30, falling short of the $992 million forecast by analysts, according to FactSet. The company reported revenue of $1.3 billion during the same period last year.

In a letter to shareholders, Rivian attributed the decline in sales to a production pause and “a more challenging consumer environment.”

Rivian faces several hurdles, including supply chain issues, safety issues and slowing demand for electric vehicles from consumers concerned about costs 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. While Trump has toned down his criticism of electric vehicles after Tesla boss Elon Musk endorsed him, he is considering ending a $7,500 federal tax credit for the purchase of new electric vehicles.

The company reported a third-quarter net loss of $1.1 billion, or $1.08 per share, compared with a loss of $1.4 billion in the same period last year.

Rivian made its stock market debut in 2021 and saw its stock price fall 42% over the last year. Rivian shares closed Thursday at $10.04, up 3.35%.

The company's stock price took a hit last month when the startup missed third-quarter delivery expectations and lowered its production forecast, reportedly due to misunderstandings with its copper winding supplier. Rivian produced 13,157 vehicles at its Normal, Illinois manufacturing facility and delivered 10,018 vehicles in the third quarter.

As the company tries to find a path to profitability, it has struck high-profile deals with partners such as Amazon and German automaker Volkswagen Group, which said it would invest $5 billion in Rivian this year.

Known for its sleek electric adventure vehicles, Rivian stands out on the road with its pickup trucks and sport utility vehicles. However, the prices of the vehicles are too high for some consumers. The company's R1S SUV starts at $75,900 and the R1T pickup starts at $69,900. Rivian plans to launch a cheaper and more compact electric SUV called the R2 in 2026.

Rivian announced Thursday that it had signed an agreement with LG Energy Solution to supply cylindrical battery cells for the R2.

“We are excited about the future and our R2 midsize SUV, which we believe will be a key driver of Rivian’s growth,” RJ Scaringe, the company’s founder and CEO, said in a statement. He added that the company looks forward to completing its joint venture with Volkswagen in the fourth quarter.