EV maker Rivian is reporting what’s expected to be a big Q3 earnings report on Tuesday after the market close. The report comes as Rivian has continued to improve its per-vehicle losses as it ramps production.
Deliveries continue growing in the third quarter
Rivian crushed expectations, delivering 15,564 vehicles in the third quarter, up 24% from Q2 and more than doubling last year’s figures. The EV maker built 16,304 EVs in Q3, 17% more than the previous quarter.
As Rivian better leverages its Normal, Illinois facility, the cost to build each vehicle has fallen significantly.
Rivian lost $32,595 on each vehicle made in the second quarter. Although this is still a high number, it’s down over 50% from the first quarter’s loss of $67,329.
The improvements are even more drastic compared to last year’s $139,277 loss per vehicle in Q3.
Q3 ’22
Q4 ’22
Q1 ’23
Q2 ’23
Rivian loss per vehicle
$139,277
$124,162
$67,329
$32,594
Rivian loss per vehicle quarterly
Investors will watch this number closely on Tuesday as Rivian reports its Q3 earnings. Scaringe previously said he expects Rivian to reach break-even on each EV built by next year.
Profitability comes into focus
Reaffirming this target, Rivian’s CEO RJ Scaringe told CNBC the company is seeing significant progress quarter-over-quarter.
Scaringe said, “What we’re going to see is a very clear staircase or set of steps that get us to profitability as a business.”
Although scaling production has improved vehicle margins, Rivian has also introduced other cost-cutting measures. The EV maker confirmed it’s on track to reach its goal of building 52,000 vehicles this year.
Scaringe also mentioned that he does not see customer overlap with Tesla’s Cybertruck and the Rivian R1T.
Rivian has been among the few EV makers to avoid drastic price cuts. Market leader Tesla has slashed prices all year to boost demand. Tesla’s prices are down about 25% YOY.
Rivian Q3 earnings financial preview
Investors got a scare after Rivian revealed plans to issue $1.5 billion in convertible debt last month. The news came days after Scaringe said the company was “very comfortable” with the company’s “strong balance sheet.”
Scaringe eased investors’ minds, telling Reuters that the offering was designed to free up funds as it enters a new growth phase. It’s intended to create an additional buffer rather than reflect cash concerns, according to Scaringe.
Rivian had around $9.2 billion in cash at the end of June. The EV maker’s preliminary Q3 earnings suggest between $1.29 billion and $1.33 billion in revenue, aligning with Wall St estimates of $1.3 billion.
The EV maker posted a net loss of $1.12 billion in Q2, compared to $1.7 billion last year and $1.4 billion in Q1.
After the progress, Rivian improved its adjusted EBITDA guidance to ($4.2 billion) while lowering CapEx to $1.7 billion.
Rivian’s stock is down 45% over the past 12 months despite a hot streak following strong Q2 results.
Electrek’s Take
Several automakers, including Ford and GM, recently delayed EV targets, with widening losses on electric models.
However, others, including Hyundai and Kia, expect the momentum to continue with electric cars. Can Rivian keep the growth up? We will see Tuesday after the market closes. Check back for final details.
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GreenPower Motor Company says it’s received three orders for 11 of its BEAST electric Type D school buses for western state school districts in Arizona, California, and Oregon.
GreenPower hasn’t made the sort of headline-grabbing promises or big-money commitments that companies like Nikola and Lion Electric have, but while those companies are floundering GPM seems to be plugging away, taking orders where it can and actually delivering buses to schools. Late last year, the company scored 11 more orders for its flagship BEAST electric school bus.
As far as these latest orders go, the breakdown is:
seven to Los Banos Unified School District in Los Banos, California
two for the Hood River County School District in Hood River, Oregon
two for the Casa Grande Elementary School District in Casa Grande, Arizona
Those two BEAST electric school buses for Arizona will join another 90-passenger BEAST that was delivered to Phoenix Elementary School District #1, which operates 15 schools in the center of Phoenix, late last year.
“As school districts continue to make the change from NOx emitting diesel school buses to a cleaner, healthier means of transporting students, school district transportation departments are pursuing the gold standard of the industry – the GreenPower all-electric, purpose-built (BEAST) school buses,” said Paul Start, GreenPower’s Vice President of Sales, School Bus Group. “(The) GreenPower school bus order pipeline and production schedule are both at record levels with sales projections for (2025) set to eclipse the 2024 calendar year.”
GreenPower moved into an 80,000-square-foot production facility in South Charleston, West Virigina in August 2022, and delivered its first buses to that state the following year.
Electrek’s Take
Since the first horseless carriage companies started operating 100 years ago (give or take), at least 1,900 different companies have been formed in the US, producing over 3,000 brands of American automobiles. By the mid 1980s, that had distilled down to “the big 3.”
All of which is to say: don’t let the recent round of bankruptcies fool you – startups in the car and truck industry is business as usual, but some of these companies will stick around. If you’re wondering which ones, look to the ones that are making units, not promises.
While some recent high-profile bankruptcies have cast doubt on the EV startup space recently, medium-duty electric truck maker Harbinger got a shot of credibility this week with a massive $100 million Series B funding round co-led by Capricorn’s Technology Impact Fund.
It’s been a rough couple of weeks for fledgling EV brands like Lion Electric and Canoo, but box van builder Harbinger is bucking the trend, fueling its latest funding round with an order book of 4,690 vehicles that’s valued at nearly $500 million. Some of the company’s more notable customers including Bimbo Bakeries (which owns brands like Sara Lee, Thomas’, and Entenmann’s) and THOR Industries (Airstream, Jayco, Thor), which is also one of the investors in the Series B.
The company plans to use the funds to ramp up to higher-volume production capacity and deliver on existing orders, as well as build-out of the company’s sales, customer support, and service operations.
“Harbinger is entering a rapid growth phase where we are focused on scaling production of our customer-ready platform,” said John Harris, co-founder and CEO. “These funds catalyze significant revenue generation. We’ve developed a vehicle for a segment that is ripe for electrification, and there is a strong product/market fit that will help fuel our upward trajectory through 2025 and beyond.”
The company has raised $200 million since its inception in 2021.
There is no state more associated with cars and car culture than Michigan – and the state that’s home to the Motor City has just taken a huge step into the future with the deployment of its first-ever all electric police vehicle.
The 2024 Ford Mustang Mach-E patrol vehicle is assigned to the Michigan State Police State Security Operations Section, and will be to be used by armed, uniformed members of the MSP specializing in general law enforcement and security services at state-owned facilities in the Lansing, MI area.
“This is an exciting opportunity for us to research, in real time, how a battery electric vehicle performs on patrol,” says Col. James F. Grady II, director of the MSP. “Our state properties security officers patrol a substantially smaller number of miles per day than our troopers and motor carrier officers, within city limits and at lower speeds, coupled with the availability of charging infrastructure in downtown Lansing, making this the ideal environment to test the capabilities of a police-package battery electric vehicle.”
In those tests, the EVs have impressed – but the MSP has been hesitant to commit to a BEV until now. “We began testing battery electric vehicles in 2022, but up until now hybrids were the only alternative fuel vehicle in our fleet,” said Lt. Nicholas Darlington, commander of the Precision Driving Unit. “Adding this battery electric vehicle to our patrol fleet will allow us to study the vehicle’s performance long-term to determine if there is a potential for cost savings and broader applicability within our fleet.”