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Electric vehicle maker Rivian misses third-quarter revenue forecasts
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Electric vehicle maker Rivian misses third-quarter revenue forecasts

Manufacturer of electric vehicles Rivian missed Wall Street’s earnings expectations on Thursday, with lower-than-expected sales in the third quarter.

The Irvine-based company reported revenue of $874 million in the three months ended Sept. 30, which fell short of the $992 million analysts had expected, according to FactSet. The company posted revenue of $1.3 billion in the same period a year ago.

In a shareholder letter, Rivian attributed the revenue decline to a production disruption and “a more challenging consumer environment.”

Rivian faces several obstacles, including supply chain issues, safety issues and slowing demand for electric vehicles from consumers concerned about cost 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. trump cardthough he toned down his criticism of electric vehicles after Tesla Chief Executive Elon Musk backed him, he considered ending a $7,500 federal tax credit for new electric vehicle purchases.

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

Rivian made its public debut in 2021 and has seen its stock price fall 42% over the past year. Rivian shares closed at $10.04, up 3.35%, on Thursday.

The company’s share price was hit last month when the startup missed its third-quarter delivery expectations and cut its production forecast due to miscommunication with its supplier. copper windings. Rivian produced 13,157 vehicles at its manufacturing facility in Normal, Illinois, and delivered 10,018 vehicles in the third quarter.

As the company sought to find a path to profitability, it struck major deals with partners including Amazon and German automaker Volkswagen Group, which said it would invest $5 billion in Rivian this year.

Known for its stylish electric adventure vehicles, pickup trucks and SUVs from Rivian stand out on the road. For some consumers, however, vehicle prices are too high. The company’s R1S SUV starts at $75,900 and the R1T pickup truck starts at $69,900. Rivian plans to launch a cheaper and more compact electric SUV, known as the R2, in 2026.

Rivian said Thursday it has signed an agreement with LG Energy Solution to supply cylindrical battery cells for the R2.

“We are excited about the future and our mid-size SUV, the R2, which we believe will be a fundamental driver of Rivian’s growth,” RJ Scaringe, the company’s founder and chief executive, said in a statement. He also added that the company is looking forward to closing its joint venture with Volkswagen in the fourth quarter.