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Rivian (RIVN) Reports Record Q3 EV Production & Deliveries

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Rivian Automotive (RIVN - Free Report) registered record battery electric vehicle (BEV) production and delivery numbers in the third quarter. The automaker produced 16,304 units, representing an uptick of 121% from the year-ago quarter. The company manufactured all its vehicles in Normal, IL, factory. It delivered 15,564 units, up 136% from the corresponding quarter of 2022. Deliveries rose 23% sequentially and surpassed Wall Street estimates.

The company is on track to manufacture 52,000 vehicles this year, consistent with its previous guidance.

Rivian currently produces the R1T truck, the R1S SUV and a series of electric delivery vans for Amazon.  

Last year, the automaker struggled with supply chain bottlenecks that hindered vehicle production. Earlier this year, supply chain issues eased, lifting impediments to production. The company also took some crucial cost-reduction steps this year. It trimmed its staff count by 6% in February and improved its factory efficiency. Rivian developed its own drive unit, the Enduro to reduce its dependency on suppliers. The automaker also postponed the launch of the R2 vehicle platform from 2025 to 2026.

Rivian plans to expand its lineup with additional powertrain and battery versions of its existing consumer vehicles.

In a recent securities filing, Rivian proposed to offer $1.5 billion in green convertible senior notes due by Oct 15, 2030 to eligible institutional investors. Interested buyers would also have the option to buy up to $255 million in principal notes, with settlement available within 12 days from the issuance date.

The holders will have the right to convert notes under certain conditions. The senior convertible notes will have priority over other debt securities. These senior convertible notes also align with the Green Bond Principles, which ensure that the proceeds go to green projects.

The automaker will announce its third-quarter earnings report after the closing bell on Nov 7, 2023.

Zacks Rank & Key Picks

RIVN currently carries a Zacks Rank #3 (Hold).

Some better-ranked players in the auto space are Li Auto (LI - Free Report) , Ford Motor Company (F - Free Report) and Modine Manufacturing Company (MOD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for LI’s 2023 sales and earnings implies year-over-year growth of 154.7% and 9,200%, respectively. The EPS estimate for 2023 and 2024 have moved north by 31 cents and 65 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for F’s 2023 sales and earnings indicates year-over-year rises of 7.5% and 12.2%, respectively. The EPS estimates for 2023 and 2024 have moved up by 6 cents and 8 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 9.2% and 47.7%, respectively. The EPS estimates for 2023 and 2024 have moved north by 24 cents and 20 cents, respectively, in the past 60 days.

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