Rivian (RIVN) Q3 earnings preview: Will rising costs slow production ramp?
Rivian ($RIVN) is set to deliver its third-quarter earnings Wednesday, November 9, after the bell as the EV maker comes under the microscope into year’s end. Can Rivian continue expanding operations, or will inflationary pressure slow its momentum? In this Rivian Q3 earnings preview, I’ll discuss what to look for as the EV startup attempts to establish its position in the growing electric vehicle market.
Rivian Q3 deliveries and updates
Rivian began deliveries of its R1T electric pickup in September 2021, followed by the R1S and EDV electric delivery van later that year.
Higher input prices due to inflation caused the automaker to raise prices in March 2022, which caused some buyers to cancel their orders.
At the end of the second quarter, the automaker announced it had produced 4,401 vehicles (+72% QoQ) and delivered 4,467 EVs, an increase of 264% from Q1. Rivian also confirmed at the time it was on track to achieve its prior guidance of producing 25,000 EVs in 2022.
Rivans net backlog for its R1T pickup grew to around 98,000 as the average daily preorder rate rose in the second quarter.
In October, Rivian announced it produced 7,363 electric vehicles at its Normal, Illinois plant and delivered 6,584 EVs during the third quarter ending September 30, 2022.
Amazon confirmed yesterday that the e-commerce giant will roll out over 1,000 Rivian EDVs this holiday season as part of its 100,000 orders to be completed by 2025. The partnership should help supplement Rivian with cash flow as it scales production over the next few years.
At the same time, several macroeconomic factors are causing pressure on startups and the auto industry in general. Rising interest rates and labor are cutting into already tight profit margins while causing debt to become more expensive over time.
Rivan’s financial situation
Rivian generated $364 million in revenue in the second quarter, primarily driven by EV deliveries. Meanwhile, ramping up production and launching new EV platforms is costly, as Rivian recorded a gross loss of $704 million. Claire Mcdonough explains on the company’s Q2 earnings call:
Simultaneously launching two vehicle platforms and production lines is a complex process with high fixed costs associated with the labor and overhead required to run our large-scale plant, which can support 150,000 units of annual capacity.
Altogether, Rivian posted a net loss of $1.7 billion as operating expenses reached over $1 billion. To compensate, the company says it will focus on “optimizing our product road map and associated operating expenses,” cutting capital expenditure guidance by $600 million.
Regarding the balance sheet, Rivian ended the second quarter with $15 billion in cash, noting they “remain confident in our path to launch the R2 vehicle platform” with the cash on hand. Meanwhile, the company’s total debt climbed to $1.65 billion.
To boost production, Rivian did note it will be adding a second shift for general assembly.
Rivian Q3 earnings preview: What to look out for
One of the biggest things investors will be looking for is demand. Is Rivian’s backlog growing, and is the average daily preorder rate still rising?
If Rivian is on track to hit its 2022 production goal of 25,000, it would indicate an improvement in Q3 and Q4 production levels. The company produced 6,954 in the first half of the year, meaning they need to achieve over 18,000 in the second half.
Guidance is always a critical factor to keep an eye on. With rising input costs, can Rivian maintain and build upon its momentum? Or will the changing macroeconomic environment prove to be too much?
The last thing to watch for is any updates on the R2 platform. Rivian said that although its R1 models won’t meet the price threshold to receive tax credits provided by the Inflation Reduction Act, its R2 product line is being developed “to allow our customers to capture the value of these incentives.”
Rivian stock price is down over 70% this year, like many unprofitable growth companies. If Rivian wants to get back on track, it must show it can manage its debt while continuing to build its production capabilities. The Amazon EDV backing should help, but it needs to show it has what it takes to compete in the highly competitive EV market to get investors back on board. Doing so will mean trimming debt, building cash flow, and getting margins under control.
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![This electric excavator has battery swap tech that lets it recharge in minutes [update]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/04/electric-excavator.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
UPDATE: telematics announcement.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.
We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.
You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.
Telematics announcement at bauma
Earlier today, XCMG launched its next-generation Xrea Global Telematics Platform, integrating IoT, big data, cloud computing, and AI to enable what it’s caling, “seamless cross-border fleet management.”
The new telematics platform supports a dozen languages via PC and mobile interfaces, and offers real-time diagnostics, predictive maintenance, and data-driven optimization of both the vehicle and the vehicle’s batteries, empowering equipment managers and fleet operators to track fleets across town, or across time zones.
“XCMG remains committed to advancing engineering technology to empower a sustainable future. Our mission is to deliver efficient, intelligent, and eco-friendly lifecycle solutions for global clients,” said Mr. Yang Dongsheng, Chairman of XCMG Group and XCMG Machinery. “Today, 19% of our product portfolio comprises green innovations under our ‘Green Mountain’ new energy line, with full electrification across all series underway.”
SOURCE | IMAGES: XCMG; via PR Newswire.
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![A vast 600 MW Texas solar farm just hit a major milestone [update]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/01/Hornet-Solar-Texas-2.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
Renewable developer Vesper Energy has cut the ribbon on Hornet Solar in Swisher County, Texas, one of the largest single-phase solar farms in the US.
As Electrek reported in January, the 600-megawatt (MW) Hornet Solar includes over 1.36 million modules covering more than 6 square miles. The project will contribute more than $100 million in new tax revenue to Swisher County and deliver 600 MWac of energy–enough to power 160,000 homes annually.
January 30, 2025: “The seamless coordination between our team and our EPC partner, Blattner, has enabled us to remain ahead of schedule and on budget while ensuring quality throughout the process,” said Juan Suarez, co-CEO of Irving-based Vesper Energy.
Hornet Solar uses bifacial solar panels mounted on a single-axis tracking system to maximize efficiency. The solar farm is connected to Oncor Electric’s transmission system within ERCOT and is contracted to provide power to four off-take partners through individual Virtual Power Purchase Agreements (VPPAs).
The Hornet Solar project in the Texas Panhandle is on track to be fully online by spring 2025.
Texas is a utility-scale solar leader in the US, with a ranking of No. 2 and 37,713 MW currently installed. It’s projected to install 51,144 MW over the next five years and move into the No. 1 spot, according to the Solar Energy Industries Association (SEIA). The total solar investment in the state is $45.2 billion.
On January 21, the SEIA, Conservative Texans for Energy Innovation (CTEI), Advanced Power Alliance (APA), and the Texas Solar + Storage Association (TSSA) reported that existing and expected utility-scale solar, wind, and battery storage projects will contribute over $20 billion in total tax revenue – and pay Texas landowners $29.5 billion – over the projects’ lifetimes.
Read more: Texas just became No 1 in the US for most utility-scale solar
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