Electric vehicle maker Rivian Automotive (NASDAQ:RIVN) saw its stock rise 3% despite reporting third quarter revenue that fell short of analyst expectations.
The company's earnings per share also missed estimates, but investors appeared to focus on progress in cost reduction efforts and production targets.
Rivian reported third quarter revenue of $874 million, below the consensus estimate of $1.01 billion. The company's adjusted loss per share came in at -$1.08, wider than the -$0.95 analysts had projected. However, Rivian delivered 10,018 vehicles during the quarter and produced 13,157 at its Illinois facility.
Despite the revenue miss, Rivian reaffirmed it remains on track to achieve positive gross profit in the fourth quarter of 2024. The company cited improvements in revenue per unit, variable costs, and fixed costs as key drivers. Rivian also maintained its full-year 2024 delivery outlook of 50,500 to 52,000 vehicles.
"This quarter we have made progress against our key objectives and have seen meaningful progress on our Gen 2 R1 cost structure due to the new technologies incorporated into the vehicle and manufacturing process," said RJ Scaringe, Rivian's Founder and CEO.
The company revised its 2024 production guidance to 47,000-49,000 vehicles, down from previous estimates, due to a component shortage. Rivian also updated its annual adjusted EBITDA loss forecast to between $2.825 billion and $2.875 billion.
Rivian ended the quarter with $6.74 billion in cash and short-term investments. The company's total liquidity, including credit facilities, stood at $8.11 billion as of September 30.
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