Why is Rivian Automotive, Inc. stock underperforming the market?

Rivian Automotive Inc. (NASDAQ: RIVN) reported third-quarter revenue of $874 million, missing the Street consensus estimate of $1.00 billion, and a loss of 99 cents per share, which was below the expected loss of 92 cents per share. Despite these financial shortfalls, the company successfully reduced operating expenses to $777 million from $963 million the previous year. Rivian produced 13,157 vehicles and delivered 10,018 in the third quarter, reaffirming its 2024 production guidance of 47,000 to 49,000 vehicles and a delivery outlook of 50,500 to 52,000 vehicles. CEO RJ Scaringe emphasized the goal of achieving positive gross profit in the fourth quarter and highlighted the R2 vehicle as a potential growth driver. Strategically, Rivian secured a $6.6 billion loan from the U.S. Department of Energy for a new manufacturing facility in Georgia, expected to create 7,500 jobs, and expanded its joint venture with Volkswagen to $5.8 billion. Analyst opinions on Rivian are mixed, with some raising price targets due to recent developments, while others remain cautious due to financial challenges, including a high debt-to-equity ratio of 1.06 and a net margin of -125.86%. Analysts like Cantor Fitzgerald's Andres Sheppard maintain positive ratings, whereas Baird Analyst Ben Kallo downgraded Rivian to Neutral, citing demand and production concerns. Rivian's future growth hinges on executing its production plans and leveraging strategic partnerships amidst these financial hurdles.