California-based Rivian (RIVN) beat Q3 analyst estimates Monday as EV deliveries and production continue climbing. As production ramps, the EV maker remains on track to hit its 52,000 target for 2023.
Rivian beats Q3 estimates as EV deliveries climb
Rivian announced Q3 production and delivery numbers Monday, showing another solid quarter of growth.
As demand grows for Rivian’s R1T and R1S, the company produced 16,304 electric vehicles, up from 13,992 (+17%) in the second quarter. Meanwhile, Rivian’s EV deliveries reached 15,564 in Q3, up from 12,640 (+23%) last quarter.
The growth was enough to easily surpass FactSet estimates of 14,000. The forecasts were lowered from 15,000 in mid-September, citing weakening demand and causing Rivian stock to plunge almost 20%.
Despite this, Rivian continues roaring ahead. Last month, Rivian’s CEO RJ Scaringe said the EV maker “rounded the corner” at a Morgan Stanley Conference.
With production of its in-house Enduro drive units and LFP batteries ramping, Rivian says it’s on track to hit its 52,000 annual production guidance.
According to Scaringe, the in-house units have been a “ley enabler” of the recent production ramp.
Rivian’s CFO, Claire McDonough, claimed the company began seeing relief in its supply chain in June, which has helped in the ramp-up. McDonough also explained that Rivian would shift focus to R1S to meet the “robust backlog of preorders that extends into 2024.”
After surpassing Q2 expectations, Rivian raised its target from 50,000 previously. We’ll learn more about the company’s financial situation on November 7, when Rivian releases its Q3 earnings report.
Investors will be looking to see if gross margins continue improving while Rivian scales production. Although gross margins improved by 50% in Q2, Rivian is still losing $32,595 on every vehicle it makes.
The news comes after Tesla missed Q3 estimates this morning, delivering 435,000 vehicles. The EV leader said lower delivery numbers were due to “planned factory downtime.” Both EV stocks, Rivian and Tesla, are trending lower in Monday’s early trading session.