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EV Makers Rivian & Lucid Lost 2 Billion In The 3rd Quarter 

Written by Jerry Reynolds | Nov 12, 2024 7:44:51 PM

Ouch! is about all you can say about the financial results of these two all-electric automakers.  Losses of 2 Billion dollars combined is a tough pill to swallow, but it took Tesla 14-years to turn a profit. 

Rivian lost a staggering $39,130 for every vehicle it sold in the 3rd quarter of 2024.  Believe it or not, it could be a lot worse since Lucid lost $341,000 per vehicle in the same quarter.  It’s going to be tough to make that up in volume.

Just my opinion, it may be time for these two car companies to change their sales models and get good car dealers selling and servicing their products at dealerships. 

RIVIAN STATEMENT:

Portions exerpted from Press Release →

...the company is experiencing a production disruption due to a shortage of a shared component within its Enduro motor system on the R1 and RCV platforms. As a result of this disruption Rivian revised its latest full year 2024 production guidance to between 47,000 to 49,000 vehicles, and is also revising its annual adjusted EBITDA guidance to between a $(2.825) billion loss to a $(2.875) billion loss. Rivian is reaffirming its delivery outlook of between 50,500 to 52,000 vehicles and $1,200 million in capital expenditures. 

Total revenues for the third quarter of 2024 were $874 million, primarily driven by the delivery of 10,018 vehicles. Total revenues from the sale of regulatory credits were $8 million for the quarter. 

Rivian generated negative gross profit of $(392) million for the third quarter of 2024 as compared to $(477) million for the third quarter of 2023. 

Cost of revenues for the third quarter of 2024 included $37 million of costs the company does not anticipate being part of its long-term cost structure which was made up of cost of revenue efficiency initiatives primarily related to certain supplier liabilities incurred.

Rivian’s net loss for the third quarter of 2024 was $(1,100) million as compared to $(1,367) million for the same period last year.

LUCID STATEMENT:

Exerpted from Press Release →

Lucid reported Q3 revenue of $200.0 million on deliveries of 2,781 vehicles and expects to manufacture approximately 9,000 vehicles in 2024. Lucid ended the third quarter with approximately $5.16 billion in total liquidity.

"Our momentum continues with our third consecutive quarter of record deliveries," said Peter Rawlinson, CEO and CTO at Lucid. "Additionally, today we are delighted to open the order book for the much-anticipated Lucid Gravity SUV, a landmark product, which remains on track for start of production this year. Furthermore, our recent capital raise of approximately $1.75 billion serves to further secure the future of the company by extending its financial runway well into 2026."

Lucid ended the third quarter of 2024 with approximately $4.03 billion cash, cash equivalents and investments. As of September 30, 2024, Lucid had total liquidity of approximately $5.16 billion from cash, investments, ABL, GIB, and delayed draw term loan credit facilities. In October 2024, Lucid closed its latest capital raise of approximately $1.75 billion, giving sufficient financial runway into the ramp of the Lucid Gravity and well into 2026.

Portions exerpted from Lucid Third Quarter Earnings Release →

Annual production guidance of approximately 9,000 vehicles, and will continue to prudently manage and adjust production to meet sales and delivery needs.

In the third quarter, Lucid recorded revenue of $200.0 million.

Lucid recognized non-cash charges of $417.7 million, including inventory and firm purchase commitments write-downs of $154.9 million, a loss of $240.3 million from change in fair value of derivative liabilities associated with redeemable convertible preferred stock, a loss of $13.7 million from change in fair value of common stock warrant liability, and a loss of $8.8 million from change in fair value of equity securities.

Photo Credit: Lucid.