The company is struggling to resolve a component shortage that has been affecting the production of its R1S and R1T vehicle models.
Even more so, last month the electric vehicle manufacturer lowered their annual production to 47,000 vehicles because of the “acute” supply problem with a component needed in their Enduro motor used by Rivian R1 EV. The Enduro motor is one of Rivians’s movements to become more integrated than reliant on other suppliers. Yet, in this case, it marks a negative impact.
RJ Scaringe, the CEO and Founder of the company said “This has been a tough quarter for us because of some of those supply chain or supply ramp challenges, and one of those suppliers in particular has limited our production quite substantially,” also adding “And we’re working very, very hard to address that. This is one of our highest priorities in terms of the business, and we’re seeing this is really a short-term issue, but it certainly introduced challenges.”
While the supplier was one of the causes responsible for the revenue hit, there can also be another factor that might have interfered with the gap created between the production and the delivery in the third quarter.
Rivian reported that last month they produced 13,157 vehicles, out of which they delivered 10,018, also highlighting that the demand was also a factor. Rivian also says that they revise and adjust their annual adjusted earnings between $2.82 billion and $2.87 billion. Rivian had adjusted their earnings loss of $2.7 billion.
It’s also worth mentioning that Rivian’s EV third-quarter revenue of $ 874 million represents 34.6% lower than the $ 1.33 billion it generated in the same period of time last year. The Electric Vehicles company also said revenues from the sale of regulatory credits were $8 million for the quarter. Yet, the EV producer succeeded in dominating operation expenses that had helped losses to $ 1.1 billion.
Rivian also stated that they still making positive developments in their next-generation R2 platform which is a midsize SUV. Scaringe said that they “will be a fundamental driver of Rivian’s growth.” reported TechCrunch.
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