Rivian Automotive (NASDAQ:RIVN) just dropped its Q3 numbers, and while the revenue miss$874 million versus the $1 billion Wall Street was hoping forleft some investors uneasy, there’s more to this story. Yes, the EV maker took a hit from a nagging component shortage in its Enduro motor system, causing both revenue and earnings to slip below expectations. But here’s the kicker: Rivian isn’t blinking. The company reaffirmed its production target of 47,000-49,000 vehicles for 2024 and is charging ahead with plans to break into the mass-market EV game with its $45,000 R2 SUV.
Now, let’s talk strategy. Rivian isn’t just survivingit’s scheming. A new five-year deal with LG Energy Solutions ensures cutting-edge batteries for the R2, while a $5 billion joint venture with Volkswagen has Rivian doubling down on its role as a tech powerhouse. If all goes as planned, this partnership doesn’t just add cash to Rivian’s war chestit cements its seat at the table with the big players in global EV innovation. Meanwhile, the company is eyeing Q4 as the turning point, with modest gross profit expected thanks to lower costs on second-gen R1s and an uptick in its commercial van sales.
Investors seem to be warming up. After dipping earlier in the week, Rivian shares rebounded 3.5% post-earnings, and pre-market trading suggests more upside. With $7.85 billion in liquidity, a laser focus on cost efficiency, and a clear path to scaling its EV lineup, Rivian is positioning itself as a long-term contender in the electrified future. The road ahead might be bumpy, but Rivian’s driving with purposeand investors are starting to notice.
This article first appeared on GuruFocus.
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