Rivian, the electric vehicle startup aiming to compete with Tesla, posted lower-than-expected Q4 revenue, leading to a share price drop of almost 17 percent in morning trading.
CNBC reports that the electric vehicle startup Rivian released mixed fourth-quarter earnings on Tuesday, which led to a decline of about 16.6 percent in its stock price during morning trading on Wednesday.
Rivian R1T all-electric truck (Ann-Sophie Fjello-Jensen/AP Images for Rivian Automotive, LLC)
Workers assembly components of a Rivian R1T electric vehicle (EV) pickup truck at the company’s manufacturing facility in Normal, Illinois, US., on Monday, April 11, 2022. Photographer: Jamie Kelter Davis/Bloomberg
Rivian only managed to make $663 million in revenue when analysts were expecting the company to report revenue of $742.4 million. Although the company’s revenue was off the mark, its adjusted loss per share was lower than anticipated, at $1.73 instead of the estimated $1.94.
The adjusted loss before interest, taxes, depreciation, and amortization reported by Rivian for 2022 was close to $5.2 billion, which was less than the guidance of a $5.4 billion loss provided in November.
Rivian is still concentrating on ramping up production of its R1 truck and SUV as well as an electric delivery van it makes for Amazon, its largest individual shareholder, despite the mixed earnings report. The company anticipates producing 50,000 vehicles in 2023, roughly twice as many as the previous year but less than the 60,000 that several Wall Street analysts had predicted.
In a letter to shareholders, the company stated: “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. We expect supply chain challenges to persist into 2023 but with better predictability relative to what was experienced in 2022.”
According to CEO RJ Scaringe, the company’s upcoming R2 model will employ a streamlined assembly and sourcing procedure to achieve “a meaningfully lower cost structure,” According to him, the automaker’s supply chain is “in a very different position with our supply chain today” than it was a year ago. This will enable the business to implement more “aggressive cost and pricing” measures.
The results come after a challenging period for the electric vehicle startup that saw slower-than-anticipated production, unexpected pricing pressure, and plans to fire 6 percent of its staff in an effort to save money.
In October, Rivian was forced to recall nearly every vehicle it had ever produced due to safety concerns.
Breitbart News reported:
Rivian Automotive, an EV startup founded in 2009, is recalling roughly 13,000 vehicles built in 2021 and 2022 after it was discovered that a fastener connecting the upper control arm and steering knuckle may have been improperly installed, according to multiple reports including the Wall Street Journal.
While there have been several reports from customers possibly related to the issue, there are no known injuries stemming from the problem, a Rivian spokesperson said.
Rivian CEO RJ Scaringe urged customers in a letter to stop driving their vehicles if they experience any problems with steering or suspension, writing, “It’s important not to minimize the potential risks involved and why we are volunteering to conduct this recall.”
“If you experience excessive noise, vibration or harshness from the front suspension, or a change in steering performance or feel, you should call immediately,” Scaringe wrote.
The company added that “The safety of our customers will always be our top priority, and we are committed to fixing this issue on any affected vehicles as quickly as possible.”
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan