"An extremely disappointing forecast and bad numbers for the quarter just ended dragged down Rivian's stock. The company produced 10,720 vehicles and delivered 13,201 vehicles during the third quarter. Worse, its guidance for the year dropped. "Delivery results for the quarter are in line with Rivian's outlook. Today the company is narrowing its 2025 delivery guidance range to 41,500 to 43,500 vehicles." In July, the forecast was 40,000 to 46,000."
"One headwind to future results is the elimination of the $7,500 tax credit for EVs, which ended on September 30. Rivian will need to reduce prices so that the end of the benefit does not hit consumers. If that happens, it will lose more than the billions of dollars it has already lost since becoming a public company on November 10, 2021. Shares soared over 53% that day and put the company's market cap briefly above $100 billion. Its market cap is $16 billion today."
Rivian produced 10,720 vehicles and delivered 13,201 vehicles in the third quarter. The company narrowed its 2025 delivery guidance to 41,500–43,500 vehicles, down from a July range of 40,000–46,000. The $7,500 federal EV tax credit ended September 30, creating a headwind that will likely force price reductions and further losses. Rivian has lost billions since its November 2021 IPO; its market capitalization fell from over $100 billion to about $16 billion. Industrywide EV demand is expected to decline as iSeeCars projects EV share of new-car sales to fall from 8% to 4% for two years. Concerns about other small EV makers, such as Lucid, add investor uncertainty.
Read at 24/7 Wall St.
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