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Rivian (RIVN) earnings Q3 2021

Shares of Rivian Automotive plummeted 10% in after-hours buying and selling Thursday after CEO RJ Scaringe and different executives reported a surge in buyer reservations however lower automobile manufacturing expectations for the 12 months.

Rivian mentioned it expects to fall “a number of hundred automobiles brief” of its 2021 manufacturing goal of 1,200 automobiles. The corporate mentioned it confronted provide chain points in addition to challenges ramping up manufacturing of the advanced batteries that energy the automobiles.

“Ramping up a manufacturing system like this, as I mentioned earlier than, is a extremely advanced orchestra,” Scaringe instructed buyers Thursday. “We’re ramping largely as anticipated, the battery constraint is absolutely an artifact of simply mentioning a extremely automated line, and, as I mentioned, it does not current any long-term challenges for us.”

The updates come alongside Rivian’s first quarterly report as a public firm and affirmation of plans for a brand new $5 billion plant in Georgia that is anticipated to return on-line in 2024.

Except for the manufacturing snags, Rivian mentioned whole reservations for its electrical R1T pickup and R1S SUV elevated to 71,000 as of Dec. 15, up 28% in contrast with the newest tally of 55,400 automobiles in November. That is a better fee than what the corporate anticipated, officers mentioned.

The corporate mentioned it has produced 652 R1T and R1S automobiles and delivered 386 of these, together with the manufacturing and sale of the primary two R1S SUVs earlier this week.

Q3 outcomes

Rivian’s third-quarter outcomes fell in-line with Wall Avenue income expectations and with estimates the corporate beforehand launched as part of its recent IPO.

For the third quarter, Rivian reported an operational lack of $776 million and a web lack of $1.23 billion. The corporate had beforehand predicted an operational loss between $745 million and $795 million and a web loss between $1.21 billion and $1.28 billion.

The corporate posted a loss per share of $12.21 on income of about $1 million.

Wall Avenue analysts anticipated the corporate to report a $5.52 earnings per share loss on income of $1 million, in accordance with a handful of estimates compiled by Refinitiv. CNBC doesn’t evaluate reported EPS to Wall Avenue analysts for an organization’s first report since going public due to uncertainty round share counts.

New plant

Learn extra about electrical automobiles from CNBC Professional

Wall Avenue analysts have set a excessive bar for Rivian, evaluating CEO Scaringe to Superman and saying the corporate’s “the one” able to difficult EV chief Tesla.

Rivian continues to be a progress story, although. It expects capital expenditures of about $8 billion by way of 2023, with some analysts similar to BofA Securities’ John Murphy forecasting Rivian will not flip an working revenue till not less than 2025.

— CNBC’s Michael Bloom contributed to this report.

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