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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.

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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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ZEEKR unveils new 001 design refresh with 900V architecture, 7-minute charging, and a ‘starry’ interior

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ZEEKR unveils new 001 design refresh with 900V architecture, 7-minute charging, and a 'starry' interior

Chinese EV brand ZEEKR has announced a new design refresh to its flagship 001 EV model – the second in as many years. This latest upgrade to the 001 features ZEEKR’s 900V architecture, enabling better performance and some of the fastest charging speeds we’ve seen. The interior also appears quite cozy, allowing for a starry night setting on the panoramic roof.

If you know anything about the EV brand ZEEKR, you’ve probably heard of the 001 shooting brake EV. The flagship EV initially debuted in April 2021 and found early success in China before expanding its availability to new markets in Europe.

By 2023, the 001 has contributed to 64% of Zeekr’s annual global sales, including a high-performance quad motor variant called the 001 FR that was introduced in 2023. However, ZEEKR began selling a new model called the 007 in January 2024, which immediately overtook the 001 in popularity.

As a result, ZEEKR introduced a 001 refresh in February 2024, which offered customers new, lower-priced trims, plus improved performance. Even after the refresh, ZEEKR’s other models, like the 007 GT (which features newer tech at a lower price), continue to outsell the 001. So, ZEEKR has gone back to its design lab and introduced yet another 001 refresh for 2025, a much bigger overhaul.

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  • ZEEKR-001-refresh-

ZEEKR 001 refresh will hit the market on October 11

Although most of China is currently on holiday to celebrate the Mid-Autumn Festival, ZEEKR’s marketing team was hard at work, sharing numerous images, videos, and performance specs of the new 001 refresh on social media channels like Weibo and WeChat.

According to the company, the 2025 001 refresh EVs are already making their way to ZEEKR showrooms around China before the official launch and start of deliveries on October 11. Those pre-order holders will be some of the first to experience the new 001 upgrades, which are centered around ZEEKR’s new E-Powertrain technology – a full-stack 900V architecture.

This is a significant upgrade from the 001’s previous 800V system. The result is significantly faster 12C charging, enabling 10-80% SOC in just seven minutes. Variants include an AWD version that offers 925 hp (680kW), accelerating from 0 to 100 km/h (0 to 62 mph) in 2.83 seconds to a top speed of 280 km/h (174 mph).

ZEEKR is also selling a RWD variant powered by CATL’s Qilin battery technology, offering notable (CLTC) range improvement of up to 810 km (503 miles). This version was equipped with a larger pack (113 kWh) compared to the 100 kWh in the 2024 model, which achieved a CLTC range of 750 km (466 miles).

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Source: ZEEKR/Weibo

The 2025 ZEEKR 001 refresh also features plenty of upgrades to the interior. As showcased by the automaker in a video on Weibo, a new interior design theme called “Starry Sky Concert Hall” features premium textiles and an immersive display that can be activated across the EV’s interior roof. As you can see in the video here, stars and constellations twinkle amidst the glow of the moon, while shooting stars occasionally fly across the ceiling.

Other upgrades in the 001 refresh include a new chassis and “CCD Electromagnetic Damping System,” inclusion of ZEEKR’s G-AES (General Obstacle Avoidance) emergency active safety technology, which enables automatic avoidance at speeds up to 130 km/h (81 mph), and all-scenario tire blowout protection which can keep the shooting brake stable at speeds up to 120 km/h (75 mph) after a tire fails.

As mentioned above, the ZEEKR 001 refresh is expected to reach customers in China this weekend; however, there is no word yet on whether or when it will become available in other markets, such as Europe.

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Tesla is in hot water for mishandling insurance claims

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Tesla is in hot water for mishandling insurance claims

California is taking significant enforcement action against Tesla Insurance, alleging the company has been systematically failing to handle claims properly and harming its customers in the state. The California Department of Insurance announced the action, threatening to revoke Tesla’s license to operate in the state and impose significant fines.

This isn’t the first time we’ve seen Tesla’s insurance arm in hot water, but this action from a major market like California represents a serious escalation.

According to the press release, the California Department of Insurance has issued “Accusations” and “Notices of Orders to Show Cause” against Tesla Insurance Services, Inc., Tesla Insurance Company, and their partner, State National Insurance Company. The Department alleges that these companies have repeatedly failed to comply with California’s claims handling laws, leading to significant harm for policyholders – most of whom are Tesla drivers.

The Department of Insurance laid out some of the core allegations:

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  • Egregious delays in responding to policyholder claims in all steps of the claims handling process, causing financial harm, out-of-pocket expenses, potential third-party liability exposure, and distress to policyholders.
  • Unreasonable denials and delays in fully paying valid claims to consumers. Failure to conduct thorough, fair, and objective investigations of claims, thus denying consumers the insurance benefits they expect.
  • Failure to advise policyholders of their rights to have their claims denials reviewed by the Department – a major consumer protection in California to make sure insurers are held accountable by their regulator.

The state claims that despite numerous warnings and meetings where Tesla and its partners promised to improve, “the number of justified consumer complaints and violations continued to mount.”

The companies now face potential penalties of up to $5,000 for each unlawful, unfair, or deceptive act, or up to $10,000 for each act determined to be willful. Given the Department alleges “hundreds” of mishandled claims, the fines could quickly add up into the millions.

The companies have 15 days to respond to the allegations. If the issues are not resolved, the case will go before an administrative law judge to determine if Tesla can continue to sell insurance in California.

Electrek’s Take

That does sound like Tesla, especially the part where they are ignoring the notices.

This might be more important than it sounds, as insurance is critical to Tesla’s future, particularly if it is to be an autonomous one.

Tesla first started its insurance arm to lower cost to customers and “better account for how its autonomous driver assistance features improve safety.”

However, ultimately, Tesla drivers would find it hard to insure vehicles with level 3-5 autonomous driving technology, and Tesla planned to offer those services whenever it actually achieves these levels of autonomy.

Based on these statements by the California Department of Insurance, it doesn’t sound like Tesla is ready to take on that responsibility.

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Tesla teases stripped-down Model Y expected to be unveiled on Tuesday

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Tesla teases stripped-down Model Y expected to be unveiled on Tuesday

Tesla appears to be teasing its upcoming stripped-down Model Y, which is now expected to be unveiled on Tuesday, October 7th.

Yesterday, Tesla teased a product unveiling planned for October 7th with a cryptic image of what appears to be a wheel, or wheel cover, or a fan spinning.

Now, Tesla has released a second teaser and this time, it features headlights:

Our main guess with the first teaser was the new stripped-down Model Y, and this second teaser pretty much confirms it, as it features the same headlights as the prototypes already spotted in public and leaked on the website.

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The vehicle is based on the refreshed Model Y launched earlier this year, but Tesla removed many standard features to reduce the price.

One of the features removed is the front light bar, with now just the narrow headlights remaining.

Tesla has been teasing the release of “more affordable models” since last year, but there’s been confusion around what Tesla plans to release.

As we have reported for almost a year, CEO Elon Musk canceled Tesla’s planned “$25,000 EV” in favor of stripped-down versions of its Model 3 and Model Y.

Due to Tesla still referring to them as “new, more affordable models”, many people believed that Tesla would still bring to market new, cheaper models.

In fact, the automaker initially stated that it would arrive in the “first half of 2025.”

The first half of 2025 came and went without new, cheaper models. Instead, Tesla claimed that the “first build” of the new model was produced in June, and it will launch later this year.

In July, Musk finally confirmed that the first “new affordable model” is in fact simply a Model Y.

The new stripped-down Model Y is codenamed E41 and is expected to feature cheaper materials and fewer features than the normal Model Y, which starts at $45,000 in the US.

It is expected to be equipped with more affordable materials, such as a textile interior, and to lose the Model Y’s glass roof, as well as features like the rear screen and more.

Electrek’s Take

The problem with this program is that, rather than launching a brand-new model, it will mostly cannibalize Tesla’s existing Model Y sales.

At best, it will boost Model Y demand by ~10-15% when Tesla’s production capacity is operating at ~60%.

And to achieve that, I think the variant needs to be closer to $35,000 than the $40,000 we have seen in leaks earlier.

If that’s the case, I think it will do the same thing at the Cybertruck RWD that only lasted a few months because people felt they lost too many features for the $10,000 price difference.

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