Rivian: It May Get Worse Before It Gets Better

Summary:

• Rivian missed Q3 revenue and earnings estimates, reporting a $0.99 per-share loss and $874M in revenue, both below expectations.
• The EV maker’s gross loss per vehicle increased to $39,130 in Q3, and the company lowered its FY 2024 EBITDA guidance, signaling weak profitability in the short term.
• Rivian’s production and delivery declines, attributed partly to parts shortages, raise concerns about its ability to improve margins.
• Given the ongoing risks and lowered FY 2024 EBITDA guidance, I maintain a hold rating on Rivian, awaiting improvements in production efficiency and profitability.

Rivian Automotive (NASDAQ:RIVN) delivered weaker than expected delivery numbers for Q3 last month and now missed bottom and top-line estimates for the third-quarter as well. Rivian also lowered its EBITDA outlook for FY 2024 amid a revision of

Analyst’s Disclosure: I/we have a beneficial long position in the shares of RIVN, TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.