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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The US Department of Energy (DOE) has released an encouraging new report revealing that 90% of wind turbine materials are already recyclable using existing infrastructure, but tackling the remaining 10% needs innovation.
That’s why the Biden administration’s Bipartisan Infrastructure Law has allocated over $20 million to develop technologies that address these challenges.
Why this matters
The wind energy industry is growing rapidly, but questions about what happens to turbines at the end of their life are critical. Recyclable wind turbines means not only less waste but also a more affordable and sustainable energy future.
According to Jeff Marootian, principal deputy assistant secretary for the Office of Energy Efficiency and Renewable Energy, “The US already has the ability to recycle most wind turbine materials, so achieving a fully sustainable domestic wind energy industry is well within reach.”
The report, titled, “Recycling Wind Energy Systems in the United States Part 1: Providing a Baseline for America’s Wind Energy Recycling Infrastructure for Wind Turbines and Systems,” identifies short-, medium-, and long-term research, development, and demonstration priorities along the life cycle of wind turbines. Developed by researchers at the National Renewable Energy Laboratory, with help from Oak Ridge and Sandia National Laboratories, the findings aim to guide future investments and technological innovations.
What’s easily recyclable and what’s not
The bulk of a wind turbine – towers, foundations, and steel-based drivetrain components – is relatively easy to recycle. However, components like blades, generators, and nacelle covers are tougher to process.
Blades, for instance, are often made from hard-to-recycle materials like thermoset resins, but switching to recyclable thermoplastics could be a game changer. Innovations like chemical dissolution and pyrolysis could make blade recycling more viable in the near future.
Critical materials like nickel, cobalt, and zinc used in generators and power electronics are particularly important to recover.
Key strategies for a circular economy
To make the wind energy sector fully sustainable, the DOE report emphasizes the adoption of measures such as:
Better decommissioning practices – Improving how turbine materials are collected and sorted at the end of their life cycle.
Strategic recycling sites – Locating recycling facilities closer to where turbines are decommissioned to reduce costs and emissions.
Advanced material substitution – Using recyclable and affordable materials in manufacturing.
Optimized material recovery –Developing methods to make recovered materials usable in second-life applications.
Looking ahead
The DOE’s research also underscores the importance of regional factors, such as the availability of skilled workers and transportation logistics, in building a cost-effective recycling infrastructure. As the US continues to expand its wind energy capacity, these findings provide a roadmap for minimizing waste and maximizing sustainability.
More information about the $20 million in funding available through the Wind Turbine Technology Recycling Funding Opportunity can be found here. Submission deadline is February 11.
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Mazda is finally stepping up with plans to build its first dedicated EV. The upcoming Mazda EV will be made in Japan and based on a new in-house platform. Here’s what we know about it so far.
The first dedicated Mazda EV is coming soon
Although Mazda isn’t the first brand that comes to mind when you think of electric vehicles, the Japanese automaker is finally taking a step in the right direction.
Mazda revealed on Monday that it plans to build a new module pack plant in Japan for cylindrical lithium-ion battery cells.
The new plant will use Panasonic Energy’s battery cells to produce modules and EV battery packs. Mazda plans to have up to 10 GWh of annual capacity at the facility. The battery packs will power Mazda’s first dedicated EV, which will also be built in Japan using a new electric vehicle platform.
Mazda said it’s “steadily preparing for electrification technologies” under its 2030 Management Plan. The strategy calls for a three-phase approach through 2030.
The first phase calls for using its existing technology. In the second stage, Mazda will introduce a new hybrid system and EV-dedicated vehicles in China.
The third and final phase calls for “the full-fledged launch” of EVs and battery production. By 2030, Mazda expects EVs to account for 25% to 40% of global sales.
Mazda launched the EZ-6, an electric sedan, in China last October. It starts at 139,800 yuan, or around $19,200, and is made by its Chinese joint venture, Changan Mazda.
Based on Changan’s hybrid platform, the electric sedan is offered in EV and extended-range (EREV) options. The all-electric model gets up to 600 km (372 miles) CLTC range with fast charging (30% to 80%) in 15 minutes.
At 4,921 mm long, 1,890 mm wide, and 1,485 mm tall with a wheelbase of 2,895 mm, Mazda’s EZ-6 is about the size of a Tesla Model 3 (4,720 mm long, 1,922 mm wide, and 1,441 mm tall with a 2,875 mm wheelbase).
Inside, the electric sedan features a modern setup with a 14.6″ infotainment, a 10.1″ driver display screen, and a 50″ AR head-up display. It also includes zero-gravity reclining seats and smart features like voice control.
The EZ-6 is already off to a hot sales start, with 2,445 models sold in November. According to Changan Mazda, the new EV was one of the top three mid-size new energy vehicle (NEV) sedans of joint ventures sold in China in its first month listed.
Will Mazda’s first dedicated EV look like the EZ-6? We will find out with Mazda aiming to launch the first EV models on its new in-house platform in 2027. Stay tuned for more.
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A view of offshore oil and gas platform Esther in the Pacific Ocean on January 5, 2025 in Seal Beach, California.
Mario Tama | Getty Images
President-Elect Donald Trump said Tuesday that he will reverse President Joe Biden‘s ban on offshore drilling along most of the U.S. coastline as soon as he takes office.
“I’m going to have it revoked on day one,” Trump said at a news conference, though he indicated that reversing the ban might require litigation in court.
Biden announced Monday that he would protect 625 million acres of ocean from offshore oil and gas drilling along the East and West coasts, the eastern Gulf of Mexico, and Alaska’s Northern Bering Sea. The president issued the ban through a provision of the 1953 Outer Continental Shelf Lands Act.
An order by Trump attempting to reverse the ban will likely end up in court and could ultimately be struck down.
During his first term, Trump tried to issue an executive order to reverse President Barack Obama’s use of the law to protect waters in the Arctic and Atlantic from offshore drilling. A federal court ultimately ruled that Trump’s order was not lawful and reversing the ban would require an act of Congress.
The Republican Party has a majority in both chambers of the new Congress.