Rivian Blames Supplier for Weak Third-Quarter Revenue

Rivian Automotive missed the mark on its third-quarter revenue. For the three-month period, the carmaker brought in $874 million, way below analysts’ expectations of $990 million. The company also took a gross profit loss of $392 million versus a $477 million loss in Q3 2023, according to CNBC.

A problem with one of Rivian’s suppliers was blamed for the lower-than-expected results. A shortage of a component needed for its next-generation R1 and RCV (commercial van) vehicles has significantly slowed production — an issue that began during the third quarter.

“This has been a tough quarter for us because of some of those supply chain or supply ramp challenges, and one of those suppliers in particular has limited our production quite substantially,” said Rivian CEO RJ Scaringe, per TechCrunch. “And we’re working very, very hard to address that. 

As a result, Rivian revised its annual production projection to between 47,000 and 49,000 vehicles, down from an earlier prediction of 57,000. Even though production might be lower, the company still expects vehicle deliveries to land in the 50,500-52,000 range by the end of the year.

For annual adjusted earnings, Rivian expects to lose between $2.83 billion and $2.88 billion. An earlier estimate predicted a $2.7 billion adjusted earnings loss.

Rivian Second Generation

With the goal of enhancing range and performance, Rivian revamped its all-electric truck and SUV models. For the 2025 vehicles, nearly half the hardware components have been replaced alongside upgrades to the batteries and electrical structures. Rivian is also utilizing Nvidia chips to increase computing power.

Next up is the launch of the second-generation R2 model, which will be made at Rivian’s Illinois plant beginning in 2026. The retail price, starting at $45,000, is expected to be about half of what other Rivian models cost. Rivian is slated to manufacture 155,000 R2 vehicles per year compared to 85,000 first-generation R1S and R1T units.

In June, automaker Volkswagen committed to an investment of $5 billion in Rivian. The strategic partnership will help advance electric vehicle technology as well as provide Rivian with some needed cash to gain momentum moving forward.