Written by Cláudio Afonso | LinkedIn | X
Rivian reported the third quarter financial results on Thursday revising its annual adjusted EBITDA guidance downward, now forecasting a loss between $2.825 billion and $2.875 billion for the year, up from the $2.7 billion loss it previously forecast.
The adjusted outlook reflects the impact of lower-than-anticipated production volumes, which limits Rivian’s ability to absorb fixed costs effectively.
“The lower production outlook for 2024 has a negative impact on our profitability for 2024 due to our limited ability to leverage the fixed costs of our production facility,” the EV maker stated.
“Because of this, we are revising our annual adjusted EBITDA guidance to between a $(2.825) billion loss to a $(2.875) billion loss,” the company added.
The company maintained its full-year production target of between 47,000 and 49,000 vehicles and its delivery forecast of 50,500 to 52,000 units, alongside planned capital expenditures of $1.2 billion.
However, the constrained production levels have pressured Rivian’s profitability, leading to the updated EBITDA guidance.
In the third quarter, the company’s gross profit was negative $392 million, a slight improvement from a loss of $477 million in the same period last year.
The company expects that inventory write-downs, currently at $130 million, will continue to decrease over time as manufacturing costs decline.
Rivian shares jumped 3.3% on Thursday to $10.05 after having reached a new six-month low at $9.50 on Wednesday. Shortly after the results were published, the stock rose another 1.9% to $10.24.
In the third quarter, Rivian produced 13,157 vehicles and delivered 10,018 units, representing a 36% drop compared to Q3 2023 and a 27% decline from the previous quarter. The last time Rivian’s quarterly deliveries fell below 12,500 was in early 2023.
Earlier today, the Edinburgh-based asset manager Baillie Gifford filed a new SEC filing revealing it raised its ownership stake in Rivian to 5% during the end of the third quarter as it added about 17 million shares.
Rivian’s revised production guidance targets annual deliveries between 50,500 and 52,000 units.
Written by Cláudio Afonso | LinkedIn | X
