By: Zachary Hansen
Source: The Atlanta Journal-Constitution
Rivian reduced its losses in the third quarter but also reported a sharp decline in revenue amid a supply chain disruption and softer demand from consumers for its electric SUVs, pickup trucks and delivery vans.
Company leaders, however, said the automaker’s fortunes could reach a turning point in the next few months, potentially boosting the startup closer to profitability and clearing the way to deliver its promised $5 billion EV factory to Georgia.
Rivian reported Thursday about $874 million in revenue during the year’s third quarter, a 35% decrease from the same time last year. It was the company’s lowest quarterly revenue since the beginning of 2023.
The company’s net loss for the third quarter was nearly $1.2 billion, about 15% less than the same time a year ago, as the company made progress on reducing expenses. Rivian ended June with nearly $5.4 billion in cash and cash equivalents at the end of June. At the same time last year, it had $7.9 billion in cash reserves.
Rivian and German auto giant Volkswagen announced in June a potential $5 billion partnership, which consists of an initial $1 billion investment followed by the remaining investments through 2026.
The revenue decline was primarily attributed to a production disruption at Rivian’s factory in Illinois, which prompted the California-based automaker to reduce its manufacturing goal for 2024. It lowered its yearlong production target to between 47,000 and 49,000 EVs. The goal was previously 57,000 vehicles, which would have roughly matched the start-up’s manufacturing figures from 2023.
