(Reuters) -Rivian Automotive missed market estimates for fourth-quarter deliveries on Tuesday as tough competition and high interest rates weighed on demand for its electric vehicles.
Shares of Rivian fell around 6% in pre-market trading.
The company delivered 13,972 vehicles in the quarter to Dec. 31, 10% lower than the previous quarter. It was below estimates of 14,430, according to 13 analysts polled by Visible Alpha.
High interest rates in the United States have raised monthly payments for electric vehicles, making them less affordable.
The Rivian R1T pickup truck, which starts at $73,000, also faces competition from Tesla’s Cybertruck, which was unveiled in late November.
Elon Musk-led Tesla also posted quarterly deliveries on Tuesday, with the company beating market estimates and meeting its annual goal on the back of a price war that has pressured the sector.
Seasonal weakness due to a lack of deliveries to Amazon.com during the holiday season also affected the December quarter.
Rivian produced 17,541 vehicles in the last three months of 2023, up 7.5% from the prior quarter. That took the annual production to 57,232 units, beating its forecast of 54,000.
An earlier-than-expected bond issuance in October had sent the company’s stock plunging on fears over its financial health, though Rivian said it had enough money to last through 2025.
Some analysts believe the production ramp up and continued capital spend might suggest Rivian is burning through cash rapidly and could potentially require additional funding.
The company announced a leasing option for its R1T electric pickup truck in November, which would also receive the $7,500 federal tax credit for electric vehicle purchases, in select U.S. states.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Krishna Chandra Eluri)
