Electric vehicle maker Rivian missed Wall Street’s expectations for revenue on Thursday with sales coming in lower than anticipated in the third quarter.
The Irvine-based company reported revenue of $874 million in the three months ending Sept. 30., which fell short of the $992 million projected by analysts, according to FactSet. The company recorded revenue of $1.3 billion during the same period a year ago.
In a shareholder letter, Rivian attributed the revenue drop to a production disruption and “a more challenging consumer environment.”
Rivian faces several hurdles, including supply chain problems, safety issues and a slowing demand for electric vehicles from consumers worried about cost and convenient charging options.
Automakers are also bracing for more uncertainty after Republican Donald Trump won the 2024 presidential election this week, securing his return to the White House. Trump, while he has softened his criticism of electric vehicles after Tesla Chief Executive Elon Musk backed him, has considered ending a $7,500 federal tax credit for new electric vehicle purchases.
The company reported a net loss of $1.1 billion, or $1.08 per share, in the third quarter, compared with a loss of $1.4 billion during the same period last year.
Rivian made its public debut in 2021 and has seen its share price drop 42% in the last year. Rivian shares closed at $10.04, up 3.35 %, on Thursday.
The company’s share price took a hit last month when the startup missed delivery expectations for the third quarter and lowered its production forecast, reportedly because of miscommunication with its supplier of copper windings. Rivian produced 13,157 vehicles at its manufacturing facility in Normal, Ill., and delivered 10,018 vehicles in the third quarter.
As the company has tried to find a path to profitability, it has inked high-profile deals with partners including Amazon and German automaker Volkswagen Group, which said this year it would invest $5 billion in Rivian.
Known for its sleek electric adventure vehicles, Rivian’s pickup trucks and sport utility vehicles stand out on the road. For some consumers, though, the prices of the vehicles are too high. The company’s R1S SUV starts at $75,900 and the R1T pickup truck starts at $69,900. Rivian is planning to release a cheaper and more compact electric SUV, known as the R2, in 2026.
Rivian said Thursday it signed an agreement with LG Energy Solution to provide cylindrical battery cells for the R2.
“We are excited about the future and our midsize SUV, R2, which we believe will be a fundamental driver of Rivian’s growth,” said RJ Scaringe, the company’s founder and chief executive, in a statement. He also added that the company is looking forward to closing its joint venture with Volkswagen in the fourth quarter.