Rivian reported Thursday revenue of $874 million in the third quarter — more than 12% lower than analysts estimates — as the EV startup struggled to resolve a component shortage that disrupted production of its recently overhauled flagship R1S and R1T vehicles.
Last month, Rivian lowered its annual production guidance to 47,000 to 49,000 vehicles due to the “acute” supply problem for a component within its Enduro motor, a single-motor-per-axle system used in Rivian R1 vehicles. The Enduro motor, which first debuted in vehicles in 2023, is emblematic of Rivian’s push to become more vertically integrated and less reliant on suppliers.
The company now says it will revise its annual adjusted earnings guidance to between a $2.82 billion and $2.87 billion loss. Rivian had previously estimated an adjusted earnings loss of $2.7 billion.
The gloomy revenue numbers, driven by lower production and deliveries, comes as Rivian attempts to reign in costs, improve efficiency, and market the next-generation of its flagship R1T pickup truck and R1S SUV as well as commercial vans, which are primarily sold to Amazon. Rivian has started production of a tri-motor variant of the R1 vehicles — a more expensive version — that could provide some capital and supply chain relief.
Rivian said it also continues to make progress on its next-generation R2 platform, a midsize SUV that founder and CEO R.J. Scaringe said “will be a fundamental driver of Rivian’s growth.”
Rivian announced Thursday a battery supplier partnership with LG Energy Solution to supply batteries for the R2. Under the agreement, LGES will supply 4695 cylindrical battery cells, which will be produced at a factory in Queen Creek, Arizona.
Rivian said it expects R2 production to begin in 2026.