Rivian Deliveries Are Solid. Why the Stock Is Falling.

The electric-vehicle maker narrowed its full-year deliveries guidance. (Getty Images)

Key Points

• Rivian’s third-quarter deliveries rise by nearly 32%, exceeding analysts’ estimates.
• The company lowers its full-year delivery guidance to 41,500 to 43,500 vehicles, a 500-car reduction at the midpoint.
• Rivian’s third-quarter production decreases to 10,720 vehicles from 13,157 produced in the prior year.

Shares of Rivian Automotive tumbled Thursday after the electric car maker reported solid growth in vehicle deliveries but lowered its full-year guidance.

Rivian posted third-quarter deliveries of 13,201 vehicles, up nearly 32% from the prior year and above analysts’ estimates of 12,000.

The company also narrowed its full-year guidance to between 41,500 and 43,500 vehicles, bringing the midpoint down by 500 cars compared to a previous range of 40,000 to 46,000. The outlook implies Rivian expects to deliver between 9,000 and 11,000 units in the fourth quarter, which would be down significantly from 14,183 deliveries in the same period last year. Rivian delivered 51,579 vehicles in total in 2024.

Shares were falling 8% on Thursday, putting the stock on pace for its largest daily percent decrease this year, according to Dow Jones Market Data. Rivian stock has fallen six consecutive days, falling 15% over that period.

Beyond the delivery numbers, Rivian produced 10,720 vehicles at its Normal, Ill., manufacturing facility in the third quarter, down from 13,157 produced last year.

The biggest U.S. EV maker, Tesla , reported Thursday that its quarterly vehicle deliveries climbed to a record-high 497,099 from 462,890 delivered last year. Tesla stock was down 2.5% Thursday

EV makers face a host of challenges in the months ahead. The $7,500 federal purchase tax credit expired at the end of September, effectively raising EV prices. Growing competition and weak margins—Rivian has never posted a quarterly profit—are further imperiling the sector.

Rivian will report third-quarter earnings on Nov. 4, while Tesla reports on Oct. 22.

Write to Nate Wolf at nate.wolf@barrons.com