Rivian Automotive posted revenue that narrowly topped analysts' expectations, after expiring electric-vehicle tax credits helped boost sales.
The company's revenue hit $1.56 billion for the September quarter, narrowly beating the $1.51 billion expected by analysts. That also marked a 78% increase relative to a year before.
Rivian (RIVN) said its software and services division brought in $416 million revenue, a 324% increase compared to a year earlier, primarily reflecting contributions from services that the company didn't perform in the year-prior period.
Automotive revenue came in at $1.14 million, above estimates that called for $1.08 billion. That was driven by the sale of 13,201 electric trucks and SUVs for the September quarter, a number the company reported a month ago. At the time, that figure came in below analysts' expectations, but Rivian noted Tuesday that the third quarter's delivery performance will likely be the strongest of the year.
Rivian shares fell by more than 5% on Tuesday before the market closed, but rose 4% in the extended session after earnings were reported.
Sales are expected to slow across the EV industry in the current quarter, after consumers pulled ahead their purchases to take advantage of tax credits that expired in September. Rivian, which makes vehicles that start at more than $70,000, is expected to sell about 10,000 EVs next quarter, down from the more than 14,000 it delivered a year earlier.
The company maintained its full-year sales guidance of between 41,500 and 43,500 EVs, which it announced in August. Initially, Rivian had expected deliveries of between 40,000 and 46,000 units. Last year, it sold close to 52,000 vehicles.
But Rivian expects its sales performance to improve next year with the launch of the R2, a more mass-market friendly mid-size crossover that's expected to start at $45,000. The company said Tuesday that deliveries are on track to begin in the first half of next year.
"In Q3, we continued to make significant progress across our strategic priorities which includes R2 and our technology roadmap," CEO RJ Scaringe said in a statement. "Over the long term, we believe the automotive industry will be fully electric, autonomous and software-defined."
Rivian generated a positive gross profit in the September quarter after failing to do so in the June quarter.
