### Rivian Automotive Misses Q3 Expectations, Lowers Earnings Forecast

Rivian Automotive has fallen short of Wall Street's third-quarter expectations, revealing a substantial revenue miss of $116 million. Despite a year-over-year narrowing of the net loss to $1.1 billion from $1.37 billion, the company announced a lowered earnings forecast for the year.

For the recently ended quarter, Rivian's adjusted loss per share was 99 cents, compared to the expected loss of 92 cents. Revenue stood at $874 million, falling short of the anticipated $990 million. This disappointing financial performance has prompted the company to project adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of between a loss of $2.83 billion and a loss of $2.88 billion, a revision from the prior guidance of a $2.7 billion loss.

However, Rivian maintained its optimism about achieving a "modest positive gross profit" in the fourth quarter of the year. CEO RJ Scaringe emphasized the company's focus on steering towards profitability, despite the challenges faced in the third quarter. This goal is being closely scrutinized by Wall Street, which reacted positively to the reaffirmation.

During after-hours trading on Thursday, Rivian's shares increased by approximately 2%, rebounding from an initial decline. The stock closed the day at $10.05, up 3.5%. RBC Capital Markets analyst Tom Narayan indicated that maintaining the gross profit target could boost the stock's performance, as many analysts had anticipated the possibility of the company withdrawing this guidance.

One contributing factor to Rivian's revenue decline—a 34.6% drop year over year—was the disruption in the supply chain, which impacted production. This decline included $8 million in sales of regulatory credits. The company cited supplier issues while aiming to launch its second-generation "R1" vehicles, which feature significant internal redesigns for the 2025 model year. Rivian has therefore revised its annual production forecast from 57,000 units to between 47,000 and 49,000 units.

In a strategic move, Rivian announced a partnership with LG Energy Solution to supply U.S.-manufactured battery cells for the upcoming R2 vehicles, slated for launch in 2026. This partnership is viewed as a crucial step in stabilizing Rivian's supply chain and boosting its future production capabilities.