Rivian is having some growing pains, and it really felt them in the third quarter of this year.
On an earnings call Thursday evening, the electric startup announced that production, deliveries and revenue were all down, and a single component is largely to blame. Last month, Bloomberg reported that Rivian was struggling with the ramp-up of its updated 2025 R1S and R1T models thanks to a shortage of a part for its new in-house “Enduro” electric motors. Due to a miscommunication with one supplier, Atlanta-based Essex Furukawa, Rivian was unable to secure enough copper windings to get production to where it needed to be.
“This has been a tough quarter for us because of some of those supply chain or supplier ramp challenges,” CEO RJ Scaringe said on the call. “And one of those suppliers in particular has limited our production quite substantially and we’re working very, very hard to address that. This is one of our highest priorities in terms of the business.
Perhaps most importantly, Scaringe said the company still expects a “modest” profit in Q4, which would be its first-ever. And Rivian officials reaffirmed that they hope 2025 will provide a “positive gross profit,” which would mean it would have to achieve both reliable scale and profitability with the current R1 models. That may be a tough order, especially with still-high interest rates impacting sales of expensive vehicles like the R1T and R1S.
Still, Q3’s results were clear: Rivian can pull this off but it has a long way to go. And it literally can’t afford mistakes like the one it made with its motor part supplier in the future.
Contact the author: patrick.george@insideevs.com
Credit : insideevs.com
