"Rivian Automotive Inc. ( NASDAQ: RIVN) posted another quarter that shows how little progress it has made in the electric vehicle (EV) sector. Management pointed out that revenue rose 78% to $1.56 billion. It is more instructive to look at the previous quarter (June), in which revenue was $1.3 billion. Most EV makers had a sales surge because people rushed to take advantage of the $7,500 tax credit before it ended. That did not happen to Rivian."
"Rivian's net loss in the quarter was $1.16 billion compared to $1.1 billion in the same quarter last year. Rivian produced 10,720 vehicles during the quarter. It delivered 13,201. Earlier, it reduced its total target for 2025. Rivian has partially staked its future on the new R2, which will be introduced next year. The SUV will have a base price of $45,000. That is well below the cost of its current vehicles."
"The retreat also includes the wider problem of declining EV sales because of the loss of the tax credit. iSeeCars expects that 8% of all new vehicles sold in the United States in the third quarter were EVs. It expects that figure to drop to 4% in the fourth quarter and well into next year. Add to these challenges the usual ones of range, tire wear, and lack of public charging stations."
Revenue rose 78% to $1.56 billion, but the previous quarter's $1.3 billion and lack of a tax-credit-driven sales surge show limited demand momentum. Net loss was $1.16 billion, marginally worse year-over-year, while production totaled 10,720 vehicles and deliveries reached 13,201. Management trimmed the 2025 target and is preparing a lower-priced R2 SUV with a $45,000 base to broaden addressable market, compared with R1S and R1T base prices near $77,000 and $71,000. Broader headwinds include declining EV market share after the tax credit change, range and tire concerns, limited public charging, and weak stock performance.
Read at 24/7 Wall St.
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