Rivian Automotive RIVN mentioned on Thursday after market shut that it’s on monitor to show a gross revenue within the fourth quarter regardless of a manufacturing disruption flagged earlier this 12 months.
What Occurred: The EV maker on Thursday additionally reaffirmed its 2024 supply outlook of fifty,5000 to 52,000 automobiles for the complete 12 months, serving to relieve investor worries.
Rivian lower its annual manufacturing forecast final month by as a lot as 18% to between 47,000 and 49,000 electrical automobiles, citing manufacturing disruption owing to a part scarcity. Nevertheless, the manufacturing disruption is not going to seemingly influence the corporate’s supply targets for the 12 months.
For the third quarter, the EV startup reported income of $874 million, which missed a Avenue consensus estimate of $1.00 billion, and a lack of 99 cents per share, lacking a Avenue consensus lack of 92 cents per share.
The corporate additionally introduced a five-year strategic provide settlement for batteries with LG Vitality Options for its R2 SUV, slated for launch within the first half of 2026.
Why It Issues: Rivian produced 13,157 automobiles within the third quarter and delivered 10,018 automobiles. Presently, the corporate has solely two automobiles in production- the R1T truck and the R1S SUV with a beginning value of round $70,000.
The corporate is seeking to develop its complete addressable market with the R2 SUV anticipated to be priced round $45,000, in the identical value vary as Tesla Inc’s best-selling Mannequin Y SUV.
The corporate can be planning to start out deliveries of its R3 crossover after the R2. The crossover is anticipated to be priced decrease than the R2 SUV however it’s unclear whether or not the R3’s value will undercut the Tesla Mannequin 3 or stay inside the similar vary.
Worth Motion: Rivian shares closed up 3.35% at $10.04 on Thursday. The inventory is down 52.4% year-to-date, in keeping with information from Benzinga Professional.
Take a look at extra of Benzinga’s Future Of Mobility protection by following this hyperlink.
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