EV startups Rivian, Lucid, and Canoo released third-quarter results this week.
Startups are still scrambling to get cars to customers as production increases.
Industry experts remain optimistic after third-quarter results.
Rivian, Lucid, and Canoo all reported third-quarter earnings this week, and the results make clear that the electric vehicle startups are still scrambling to fulfill large delivery backlogs even as production ramps up.
At the same time, the would-be “next Teslas” are still grappling with the challenges of ramping up manufacturing while their stock prices decline.
Rivian and Lucid each made progress toward their production goals for the year, and steadily increased customer deliveries. However, both saw the gap between production and deliveries widen in the quarter. Canoo has yet to make any production vehicles.
“The reality is, we’ve seen the continuation of how challenging this can be,” Raymond James analyst Pavel Molchanov told Insider.
We gathered insights from Molchanov and three other auto experts about the third quarter earnings and what they anticipate from these firms for the final months of what has been a difficult 2022. Here are their key takeaways.
Rivian reports more progress
Rivian produced 7,363 vehicles and delivered 6,584 in the third-quarter, marking a total of 14,317 built and 12,278 delivered since the start of 2022.
After closing the gap in the second quarter, Rivian’s pace of deliveries again fell behind production by 779 vehicles. CFO Claire McDonough attributed this backlog to setbacks related to ramping up a second shift at the company’s Normal, Illinois factory and aligning a new production schedule with changes to delivery logistics and a slower holiday period. She expects the gap to close again early next year.
“What we don’t deliver in Q4 rolls into the upcoming quarter, so you start to normalize over time as we ramp closer to the installed capacity,” McDonough told investors on the Q3 call.
CEO RJ Scaringe told investors the addition of a second production shift in Normal should push Rivian toward its 25,000-vehicle goal by year’s end, but warned of challenges as the company ramps up production.
“While the ramp curve is much faster than what we went through on the first shift,” Scaringe said, “it’s not as if it starts immediately at 100% output.”
Experts saw Wednesday’s results as a sign that Rivian continues to make progress toward meeting its target of 25,000 vehicles this year.
“We are cautiously optimistic that many of the headaches in the Rivian story are starting …read more
Source:: Business Insider