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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.

Rivian-Q3-earnings-preview-1
Rivian R1T electric pickup Source: Rivian

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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Lectric Ebikes may be launching a new XP 4 this week, and it could change everything

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Lectric Ebikes may be launching a new XP 4 this week, and it could change everything

Lectric Ebikes appears to be preparing for a major new product launch, teasing what looks like the next evolution of its wildly popular folding fat tire electric bike. Based on the clues, it looks like a new Lectric XP 4 could be inbound.

In a social media post released over the weekend, the company shared a minimalist graphic reading “XP4” along with the message “Tune in 5.6.2025 9:30AM PT.” That date – this Tuesday – suggests we’re just hours away from the big reveal of the Lectric XP 4.

If true, this would mark the next generation of the most successful electric bike in the U.S. market. The current model, the Lectric XP 3.0, has become an icon of accessible, budget-friendly electric mobility. Starting at just $999, the XP 3.0 offers a foldable frame, fat tires, a 500W motor, a rear rack, lights, and hydraulic brakes – all packed into a highly shippable design that arrives fully assembled. It’s the kind of package that has helped Lectric claim the title of best-selling e-bike brand in the U.S. for several years in a row.

With the XP 3.0 still going strong, the teaser raises plenty of questions. Will the XP 4.0 be a modest update or a major leap forward? Could we see new features like torque-sensing pedal assist, a location tracking option, or upgraded performance? Or is Lectric preparing a more comfort-oriented variant, maybe even with upgraded suspension or even more accessories included standard?

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The teaser image, which features stylized stripes in grey, blue, and black, may hold some clues. One theory is that the colors represent new trim options or component upgrades. Another possibility is that Lectric is preparing multiple variants of the XP 4.0 – perhaps targeting commuters, adventurers, and off-road riders with purpose-built versions. We took the liberty of a bit of rampant speculation late last year, so perhaps that’s now worth a revisit.

At the same time though, Lectric’s penchant for launching new models at unbelievably affordable prices has never run up against such strong pricing headwinds as those posed by uncertainty in the current US-global trade war fueled by rapidly changing tariffs for imported goods.

lectric xp 3.0 hydraulic
Previous versions of the Lectric XP e-bike line have seen sky-high sales

Whatever the case, Lectric’s knack for surprising the industry with high-value, customer-focused e-bikes means expectations will be high. The brand has built a loyal following by delivering reliable performance at a price point that few can match, and any major update to the XP lineup is likely to ripple across the market.

As a young and energetic e-bike company, Lectric is also known for throwing impressive parties around the launch of new models. It looks like I may need to hop on a red-eye to Phoenix so I can see for myself – and so I can bring you all along, of course.

Be sure to tune in Tuesday at 9:30AM PT to see what Lectric has in store – and you can bet we’ll have all the details and first impressions as soon as they drop.

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U.S. crude oil prices fall more than 4% after OPEC+ agrees to surge production in June

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U.S. crude oil prices fall more than 4% after OPEC+ agrees to surge production in June

Logo of the Organization of the Petroleum Exporting Countries (OPEC)

Andrey Rudakov | Bloomberg | Getty Images

U.S. crude oil futures fell more than 4% on Sunday, after OPEC+ agreed to surge production for a second month.

U.S. crude was down $2.49, or 4.27%, to $55.80 a barrel shortly after trading opened. Global benchmark Brent fell $2.39, or 3.9%, to $58.90 per barrel. Oil prices have fallen more than 20% this year.

The eight producers in the group, led by Saudi Arabia, agreed on Saturday to increase output by another 411,000 barrels per day in June. The decision comes a month after OPEC+ surprised the market by agreeing to surge production in May by the same amount.

The June production hike is nearly triple the 140,000 bpd that Goldman Sachs had originally forecast. OPEC+ is bringing more than 800,000 bpd of additional supply to the market over the course of two months.

Oil prices in April posted the biggest monthly loss since 2021, as U.S. President Donald Trump’s tariffs have raised fears of a recession that will slow demand at the same time that OPEC+ is quickly increasing supply.

Oilfield service firms such as Baker Hughes and SLB are expecting investment in exploration and production to decline this year due to the weak price environment.

“The prospects of an oversupplied oil market, rising tariffs, uncertainty in Mexico and activity weakness in Saudi Arabia are collectively constraining international upstream spending levels,” Baker Hughes CEO Lorenzo Simonelli said on the company’s first-quarter earnings call on April 25.

Oil majors Chevron and Exxon reported first-quarter earnings last week that fell compared to the same period in 2024 due to lower oil prices.

Goldman is forecasting that U.S. crude and Brent prices will average $59 and $63 per barrel, respectively, this year.

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Chicago plans more, and more equitable public charging as EV sales climb

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Chicago plans more, and more equitable public charging as EV sales climb

Electric vehicles’ share of the market continues to climb in America’s second city, with BEV registrations up more than 50% in the first quarter of 2025 compared with the same period last year. Great news, but charging hasn’t up – but a new plan from Chicago Department of Transportation aims to build up enough infrastructure for the city to keep up.

In a bid to keep up with the rapid growth of EVs, Chicago Department of Transportation (CDOT is currently seeking public feedback on a plan called “Chicago Moves Electric Framework.” The city’s first such plan, it outlines initiatives that include a curbside charging pilot through the city’s utility, ComEd, and expanded charging access in key areas throughout the city.

Unlike other such plans, however, the new plan aims to focus on bringing electric vehicle charging to EIEC and low income communities, too.

“Through this framework, we are setting clear goals and identifying solutions that reflect the voices of our residents, communities, and regional partners,” said CDOT Commissioner Tom Carney. “By prioritizing equity and public input, we’re creating a roadmap for electric transportation that serves every neighborhood and helps drive down emissions across Chicago.”

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Neighborhoods on the south and west sides of Chicago experience a disproportionate amount of air pollution and diesel emissions, largely due to vehicle emissions according to CDOT. Despite that, most of Chicago’s public charging stations are clustered in higher-income areas while just 7.8% are in environmental justice neighborhoods that face higher environmental burdens.

“Too often, communities facing the greatest economic and transportation barriers also experience the most air pollution,” explains Chicago Mayor Brandon Johnson. “By prioritizing investments in historically underserved areas and making clean transportation options more affordable and accessible, we can improve both mobility and public health.”

The Framework identifies other near-term policy objectives, as well – such as streamlining the EV charger installation process for businesses and residents and implementing “Low-Emission Zones” in areas disproportionately impacted by air pollution by limiting, or even restricting, access to conventional medium- and heavy-duty vehicles during peak hours.

The Chicago Moves Electric Framework includes the installation of Level 2 and DC fast charging stations in public locations such as libraries and Chicago’s Midway Airport, “supporting not only personal EVs but also electric taxis, ride-hail and commercial fleets.”

Chicago has a goal of installing 2,500 public passenger EV charging stations and electrifying the city’s entire municipal vehicle fleet by 2035.

Electrek’s Take

Chicago Drives Electric | ComEd Press Conference
ComEd press conference at Chicago Drives Electric, 2024; by the author.

I hate to sound like a bed-wetting liberal here, guys, but Chicago is getting EVs absolutely right with big utility incentives on both vehicles and infrastructure, a governor willing to stand behind smart environmental policy, and a solid push for more and better infrastructure in the areas where they’ll do the most good. They’re even thinking of the children.

Here’s hoping more cities follow suit.

SOURCE: ComEd, via Smart Cities Dive; featured image by EVgo.

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