Rivian (RIVN) released its third-quarter earnings results Wednesday after stock market close as the EV maker battles rising costs while it scales production. According to Rivian’s latest filing, the automaker missed Wall Street revenue expectations in Q3 but reaffirmed its 25,000 production goal for 2022.
Rivian Q3 2022 earnings preview
Yesterday, we released a preview of what you can expect from Rivian’s Q3 2022 earnings, including a few important updates announced during Q3.
Rivian already announced it had produced 7,363 electric vehicles at its Illinois plant and delivered 6,584 during the third quarter, which ended September 30, 2022.
The EV maker has stuck to its year-end guidance so far of producing 25,000 EVs this year despite ongoing supply chain hurdles. In the second quarter, Rivian’s backlog grew to about 98,000, with a rising average preorder rate.
In addition, Amazon confirmed it would be rolling out 1,000 Rivian EDVs for the upcoming holiday season, a portion of its 100,000 order agreement. Although the Amazon backing will help over the next few years, one of the primary things to look out for as Rivian scales production will be the cost of production.
Wall Street is looking for Rivian to post around $550 million in revenue and a quarterly loss of $1.80 per share.
Rivian Q3 2022 financial results and analysis
Rivian posted revenue of $536 million in the third quarter of 2022, missing Wall Street estimates of around $550 million.
Although revenue is important, the focus will likely be on operating costs and how the company is managing debt while Rivian builds its production capabilities.
That being said, Rivian generated a negative gross profit of -$917 million in the third quarter. Rivian notes:
As we produce vehicles at low volumes on production lines designed for higher volumes, we have and will continue to experience negative gross profit related to labor, depreciation, and overhead costs.
Rivian’s operating costs in Q3 2022 grew to $857 million, up from $694 million in the same quarter last year. Interestingly, the increase is primarily due to an increase in stock-based compensation expenses.
Overall, Rivian posted a net loss of over $1.7 billion compared to a loss of $776 million a year ago. The wider loss is because of higher input costs associated with building manufacturing capabilities.
Rivian ended the quarter with a sufficient $13.8 billion in cash despite a significant cash burn of over $1.6 billion in Q3.
Additional updates from Rivian’s third quarter earnings
Rivian’s backlog swelled to over 114,000 from 98,000 in Q2, confirming the demand for its EVs is still there. These are in addition to the 100,000 order from Amazon.
According to Rivian’s shareholder release, the company is affirming its 25,000 production guidance for 2022. In addition, Rivian still expects an adjusted EBITDA of -$5.4 billion.
The automaker continues working with Georgia, expecting to launch its R2 platform in 2026.
Rivian’s (RIVN) stock is up slightly in after-hours trading after falling over 70% so far in 2022.
With a rapidly changing macroeconomic environment (rising interest rates, inflation, etc.), introducing new electric vehicle platforms and ramping production (with high fixed costs) is a challenge. Rivian is navigating this environment so far, but widening losses and higher input costs are still concerning.
Losses stacking up is inevitable as Rivian scales production, but as production and delivery levels continue to climb, the company should start to see higher margins. Rivian says:
We expect the in-transit time from rail shipments coupled with an increase in volumes from the ramp of our second shift towards the end of the quarter will cause a larger discrepancy between production and deliveries
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China’s Contemporary Amperex Technology Co., Limited (CATL) has unveiled its latest battery cell technologies, which charge as quickly as filling up a gas tank while potentially lowering costs without compromise.
CATL has quickly become the world’s largest battery manufacturer by a wide margin. It is one of, if not the biggest, force for advancing electric transportation.
A big part of CATL’s success is due to its advancements in lithium-iron phosphate battery cells, also known as LFP. LFP cells are cheaper than nickel-rich batteries, but they used to have much lower energy density.
The Chinese battery manufacturers managed to close the gap somewhat while maintaining lower costs, resulting in LFP cells becoming popular for entry-level EVs.
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Now, CATL is looking to do the same with sodium-ion batteries.
Like LFP cells, sodium-ion battery cells have the potential to be cheaper than more common Li-ion cells, but they also offer potential for superior performance, particularly in terms of faster charging and longer lifecycles.
CATL has unveiled today Naxtra, its new sodium-ion battery cells, and it claimed some truly impressive specs.
The new cell reportedly achieves an energy density of 175 Wh per kg (385 Wh per lb), on par with the higher-end of LFP battery cells.
The new cells also offer potential for significant safety improvements.
CATL shared several intense stress tests, including drilling into a cell and even cutting it in half without any thermal event:
The next-gen sodium cells could help further lower the cost of electric vehicles without compromising performance, and while increasing safety.
On top of the new Naxtra cell, CATL has also unveiled its next-gen Shenxing LFP battery cells.
Its charge rate is truly impressive. CATL shared several examples of cars charging at around 1,000 kW and maintaining over 500 kW at over 50% state of charge:
The new cell is being described as capable of adding 300 miles (482 km) of range in about 5 minutes – depending on the EV model.
That’s virtually as quick as filling up a tank of gas.
CATL says that the Shenxing will be in 67 electric vehicle models by the end of the year.
New York State has announced an extra $30 million for point-of-sale rebates to lease or buy more than 60 new EV models.
The rebates are available to consumers through New York’s Drive Clean Rebate program, which offers a point-of-sale rebate off the manufacturer’s suggested retail price (MSRP) of an EV at participating car dealerships in New York State.
The rebate is available in all 62 counties, with the highest rebate of $2,000 available for EVs with a greater-than-200-mile range. (For a 40- to 199-mile range, the rebate is $1,000.) The New York State Energy Research and Development Authority (NYSERDA) runs the program.
NYSERDA President and CEO Doreen M. Harris said, “Converting to EVs reduces the total cost of vehicle ownership through lower fuel and vehicle maintenance costs, and NYSERDA is proud to help provide New Yorkers with more purchasing power through these rebates.”
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The Drive Clean Rebate program has issued over 190,000 rebates to consumers since 2017, contributing to the more than 280,000 EVs on the road in New York State.
NYSERDA also boosted its EV charging incentives. Through the Charge Ready NY 2.0 program, the state is boosting the cash available for Level 2 charger installations at apartment buildings, workplaces, and hotels from $2,000 to $3,000 per port. And if the chargers go into disadvantaged communities, that amount jumps to $4,000 per port.
New York has racked up over 17,000 public EV chargers, making it second only to California for charger count. On top of that, there are more than 4,000 semi-public stations tucked into workplaces and multifamily buildings across the state.
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LTL carrier ArcBest Freight (ABF) announced plans to add five new Orange EV electric terminal tractors to its existing ZEV fleet, bringing its total deployment of these battery electric HDEVs to 14 … with even more to come.
LTL stands for “Less than Truck Load,” and basically means that, since whatever you’re shipping won’t take up a full container, you can share the costs of shipping with other customers with goods going the same way. You save a little more money and the shipper makes a little more money, making it a rare win-win scenario in the shipping space. And that’s important, because LTL containers amount to a massive 15% of total US shipping.
ABF has been putting Orange EV yard dogs to work in their LTL traffic terminals since their initial deployment of four trucks in June 2022. The company added five more a few years later, and just purchased five more — further underscoring their confidence in the benefits of transitioning their fleet to electric power.
“The Orange EV terminal trucks meet our operational requirements and expectations for safe, reliable, and affordable service and performance,” explains Matthew Godfrey, ABF Freight president. “We’re committed to responsible environmental management, and our investment in EVs aligns with our continuous efforts to enhance efficiency while maintaining exceptional service standards.”
Over at The Heavy Equipment Podcast, we had a chance to talk to Orange EV founder Kurt Neutgens ahead of last year’s ACT Expo for clean trucking. On the show (embedded, above), Kurt explained how his experience at Ford helped inform his design ideology, and that the Orange EV was designed to be cost competitive with diesel options, even without subsidies.
Give it a listen, then let us know what you think of the big yard dogs in the comments.