Rivian Automotive Inc.’s forecast to pump out as many as 50,000 electric vehicles this year fell short of Wall Street’s expectations, while its revenue missed estimates. Shares slumped in early trading.
(Bloomberg) — Rivian Automotive Inc.’s forecast to pump out as many as 50,000 electric vehicles this year fell short of Wall Street’s expectations, while its revenue missed estimates. Shares slumped in early trading.
The EV maker reported $663 million in revenue in the fourth quarter, according to a statement Tuesday — below the $717 million analysts expected, according to the average of estimates compiled by Bloomberg. The company’s adjusted loss was $1.87 per share, roughly in line with analysts’ forecasts.
The company’s shares slumped as much as 9.3% in early New York trading. Rivian’s stock fell more than 80% in 2022, making it the second-worst performer on the Nasdaq 100 Index last year.
See also: Rivian shareholders looking at a long, bumpy road to profit
“Supply chain continues to be the main limiting factor of our production; during the quarter we encountered multiple days of lost production due to supplier shortages,” the company said in a letter to shareholders. “We expect supply-chain challenges to persist into 2023 but with better predictability relative to what was experienced in 2022.”
Investors are looking to Rivian as a potential contender to market leader Tesla Inc. The upstart’s November 2021 public listing was the sixth-largest in US history and attracted backing from financial institutions like T. Rowe Price Group Inc. in addition to Amazon.com Inc.
The company quickly hit problems as it tried to ramp up production amid parts shortages, and ultimately fell short of a target to build 25,000 EVs across three product lines: consumer plug-in pickups, sport utility vehicles and an electric delivery van for Amazon.
Rivian has stopped disclosing the number of net preorders for its consumer EVs but the tally stood at around 114,000 as of early November. Rivian says it still has a backlog of orders that extends into 2024.
Cash and cash equivalents stood at $12.1 billion at the end of the quarter, down from around $14 billion in the prior period ending Sept. 30.
See also: Rivian misses goal to build 25,000 EVs despite late-year surge
The electric-vehicle maker also said it expects a loss, excluding items such as interest and amortization, of $4.3 billion for 2023. The company expects to achieve a gross profit in 2024.
(Updates shares with early trading in third paragraph. An earlier version of this story corrected the spelling of T. Rowe Price Group.)
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