**Rivian Revises Financial Forecast Amid Production Disruptions and Supply Shortages**

Electric vehicle manufacturer Rivian has amended its financial outlook for the year due to ongoing production and supply chain challenges. Last month, the company reported experiencing significant disruptions attributed to a shortage of a shared component impacting both the R1 and RCV (Rivian commercial van) platforms. This shortage, which became more pronounced in recent weeks, began affecting Rivian in the third quarter.

As a consequence of these disruptions, Rivian has updated its full-year adjusted EBITDA guidance. The company now anticipates a loss ranging from $2.82 billion to $2.87 billion, exceeding the previously projected $2.7 billion loss. However, Rivian maintained its annual production target, which has now been adjusted to between 47,000 and 49,000 vehicles, down from an earlier estimate of 57,000. The automaker reaffirmed its annual delivery outlook, predicting low-single-digit growth over the previous year, with expected deliveries between 50,500 and 52,000 vehicles.

CEO RJ Scaringe expressed optimism despite the third-quarter setbacks, noting expectations of achieving a "modest gross profit" in the fourth quarter. Scaringe highlighted the progress made on the Gen 2 R1 vehicle cost structure, attributing improvements to the introduction of new technologies in vehicle design and manufacturing processes. He also expressed excitement about Rivian's future, emphasizing the anticipated impact of their upcoming midsize SUV, the R2, on the company's growth trajectory.

Financially, Rivian ended the second quarter with a significant cash reserve of $7.85 billion. A notable contribution to this strong cash position came from a joint venture with Volkswagen. The partnership aims to develop next-generation software-defined vehicle (SDV) architectures for future electric vehicles from both companies. Volkswagen's commitment includes an initial $1 billion investment in Rivian, recognized in the second quarter cash report, with potential further investments up to $4 billion through 2026, totaling up to $5 billion.

Despite the supply chain and production hurdles, Rivian remains optimistic about its strategic initiatives and future product launches, striving to attain financial stability and continued growth in the competitive EV market.