A view shows a second-generation R1S at electric auto maker Rivian's manufacturing facility in Normal, Illinois, U.S. June 21, 2024. REUTERS/Joel Angel Juarez
(Reuters) -Rivian Automotive surpassed Wall Street expectations for third-quarter revenue on Tuesday, fueled by strong deliveries as U.S. consumers rushed to grab a federal tax incentive on electric vehicle purchases before its expiry.
Shares of the Irvine, California-based company rose more than 3% in trading after the bell.
The company said last month it delivered 13,201 vehicles in the third quarter, up 32% from the year earlier, but lowered forecast for the year marginally to between 41,500 and 43,500 units, as it braced for demand uncertainty from the lapse of the $7,500 federal tax credit and cost pressures from U.S. tariffs.
Analysts also anticipate a drop off in fourth-quarter deliveries, as the loss of the incentive increased prices for EVs.
"October is going to be a bit of a funky month, because you had so much pull forward. But in the fullness of time, we think it (demand) looks the same way we thought it looked before," CEO RJ Scaringe told Reuters.
Rivian's revenue for the third quarter stood at $1.56 billion, compared with analysts' average estimate of $1.5 billion, according to data compiled by LSEG.
The company posted an adjusted net loss of 65 cents per share, smaller than the estimate of 72 cents per share.
Rivian said it remains on track to start production of its more affordable R2 SUV in the first half of next year to expand beyond the premium truck segment.
Its R&D expenses in the third quarter were $453 million, while analysts estimated $406.6 million.
Last month, Rivian laid off about 4.5% of its workforce, more than 600 employees, affecting its service, sales and marketing divisions, as it grappled with softening demand and rising costs from U.S. tariffs on imported auto parts.
In recent quarters, the company's software and services segment has been pivotal in driving overall profitability, thanks to its significantly higher margins.
(Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Shilpi Majumdar)
