Rivian takes major revenue hit as supplier problem persists
Rivian reported Thursday revenue of $874 million in the third quarter — more than 12% lower than analysts' estimates
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. In this case, the effort to bring design in-house has negatively affected production.
“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,” founder and CEO RJ Scaringe said. “And we’re working very, very hard to address that. This is one of our highest priorities in terms of the business, and we’re seeing this is really a short-term issue, but it certainly introduced challenges.”
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