Rivian Automotive (NASDAQ:RIVN) said on Thursday after market close that it is on track to turn a gross profit in the fourth quarter despite a production disruption flagged earlier this year.
What Happened: The EV maker on Thursday also reaffirmed its 2024 delivery outlook of 50,5000 to 52,000 vehicles for the full year, helping relieve investor worries.
Rivian cut its annual production forecast last month by as much as 18% to between 47,000 and 49,000 electric vehicles, citing production disruption owing to a component shortage. However, the production disruption will not seemingly impact the company's delivery targets for the year.
For the third quarter, the EV startup reported revenue of $874 million, which missed a Street consensus estimate of $1.00 billion, and a loss of 99 cents per share, missing a Street consensus loss of 92 cents per share.
The company also announced a five-year strategic supply agreement for batteries with LG Energy Solutions for its R2 SUV, slated for launch in the first half of 2026.
Why It Matters: Rivian produced 13,157 vehicles in the third quarter and delivered 10,018 vehicles. Currently, the company has only two vehicles in production- the R1T truck and the R1S SUV with a starting price of around $70,000.
The company is looking to expand its total addressable market with the R2 SUV expected to be priced around $45,000, in the same price range as Tesla Inc's best-selling Model Y SUV.
The company is also planning to start deliveries of its R3 crossover after the R2. The crossover is expected to be priced lower than the R2 SUV but it is unclear whether the R3's price will undercut the Tesla Model 3 or remain within the same range.
Price Action: Rivian shares closed up 3.35% at $10.04 on Thursday. The stock is down 52.4% year-to-date, according to data from Benzinga Pro.
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