Rivian Automotive (RIVN) Q3 2024 earnings summary

Executive summary

• Q3 2024 was marked by production challenges due to supplier ramp-up issues, particularly impacting Enduro motor availability, but significant progress was made on cost efficiency and Gen 2 R1 ramp-up.

• Produced 36,749 vehicles and delivered 37,396 vehicles in the nine months ended September 30, 2024, with a focus on expanding the R1 and commercial van platforms.

• Launched second generation R1 vehicles, R1 Tri-Motor configuration, Connect+ subscription service, and a pre-owned vehicle program; majority of customers subscribed after free trial.

• Announced a joint venture with Volkswagen Group, with up to $4.0 billion in planned investments and technology collaboration, expected to close in Q4 2024.

• Entered a tax credit agreement with Illinois, eligible for up to $827 million in incentives for plant expansion and job creation.

Financial highlights

• Q3 2024 revenue was $874 million, including $8 million from regulatory credits; nine-month revenue was $3.24 billion, up 4% year-over-year.

• Q3 2024 net loss was $1.1 billion, improved from $1.37 billion in Q3 2023; gross profit was negative $392 million, with a gross loss per vehicle of $39,100.

• GAAP operating expenses were $777 million, the lowest in three years; R&D expenses for Q3 2024 were $350 million, down 34% year-over-year.

• Cash, cash equivalents, and short-term investments stood at $6.7 billion at quarter end; total liquidity was $8.1 billion including credit facility.

• Significant portion of revenue continues to come from Amazon, with $171 million in Q3 2024 and $742 million for the nine months.

Outlook and guidance

• Annual production guidance reaffirmed at 47,000–49,000 vehicles; annual delivery outlook is 50,500–52,000 vehicles, reflecting low single-digit growth over 2023.

• Q4 is expected to achieve modest GAAP gross profit, supported by higher ASPs, increased regulatory credits, and improved cost structure.

• 2024 adjusted EBITDA loss guidance revised to $2.825–$2.875 billion; CapEx guidance unchanged at $1.2 billion.

• R2 platform launch targeted for first half of 2026 at the expanded Normal Factory, with capacity targeted at 215,000 units annually.

• Targeting positive gross profit for full-year 2025, with regulatory credits expected to remain in line with 2024.