Rivian expected to report first drop in quarterly revenue since IPO
Rivian (NASDAQ:RIVN) is expected to report its first drop in quarterly revenue since its IPO in November 2021. The electric truck maker's stock also saw a steep drop following Donald Trump's win in the U.S. presidential race.
Rivian noted in its Q3 2024 vehicle delivery and production report that it was revising its annual production guidance to between 47,000 and 49,000 vehicles due to supplier issues. Previous reports suggested that the problem was caused by a miscommunication between Rivian and Essex Furukawa, which produces copper windings that are used in the company's in-house electric motors.
As noted in a Reuters report, expectations are high that Rivian CEO RJ Scaringe would likely face tough questions from analysts and investors on how long the company's supply issues would continue at its upcoming Q3 2024 earnings call, which is expected to be held on November 7, 2024. Analysts will likely also inquire about Rivian's plans to resolve its supply issues, and if the problem will affect the company's goal of hitting gross profitability.
These were highlighted by D.A. Davidson analysts, who noted that "The company did reduce guidance, but we wonder if another reduction will be necessary if the issues bleed into November."
"We want to make sure the company remains on-track with the milestones that must be met to complete the equity, debt, and licensing part of the $5 billion deal," the D.A. Davidson analysts noted.
As of writing, Rivian stock is trading down 9.01% to $9.64 per share.
Analysts currently expect Rivian to report Q3 revenues of $1 billion, down 25% year-over-year, as well as a loss of $0.92 per share. Year-to-date, Rivian stock has dropped 55%.
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