Rivian slumps with full-year output forecast 25% below estimates
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RIVIAN Automotive forecast building as many as 50,000 electric vehicles (EV) this year, below Wall Street’s expectations, while revenue fell short of estimates. The shares fell in late trading.
The EV maker reported US$663 million in revenue in the fourth quarter, according to a statement on Tuesday (Feb 28) — below the US$717 million analysts expected, according to the average of estimates compiled by Bloomberg. The company’s adjusted loss was US$1.87 per share, roughly in line with analysts’ forecasts.
The EV maker’s shares fell 6.9 per cent at 4.22 pm in late New York trading. Rivian’s stock fell more than 80 per cent in 2022, making it the second-worst performer on the Nasdaq 100 Index last year.
“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. The upstart’s November 2021 public listing was the sixth-largest in US history and attracted backing from financial institutions like T Row Price Group in addition to Amazon.com.
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.
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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 or preorders that extends in 2024.
Cash and cash equivalents stood at US$12.1 billion at the end of the quarter, down from around US$14 billion in the prior period ending Sep 30.
The electric vehicle maker also said it expects a loss, excluding items such as interest and amortisation, of US$4.3 billion for 2023. BLOOMBERG
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