March 2, 2023

Rivian stock loses 10% following Q4 report

Rivian Automotive Inc (NASDAQ: RIVN), on Tuesday, reported weaker-than-expected sales for its fiscal fourth quarter. Shares are down nearly 10% in extended hours.

Rivian stock down on weak guidance

The EV company attributed weakness to manufacturing hiccups, including supply shortages – challenges it expects will persist in 2023 as well.

Rivian also said that it’s aiming to produce a less-than-expected 50,000 vehicles this year. Reacting to its earnings print on Yahoo Finance, D.A. Davidson analyst Michael Shlisky said:

They’re putting out a production number that’s not enough of a growth rate. To go from 10,000 units in 2022 to 12,500 a quarter isn’t a big leap. So, it might be bad news that I think will make the stock go down.

Shlisky currently has an “underperform” rating on the Rivian stock.

Rivian’s fourth-quarter financial highlights

Lost $1.70 billion versus the year-ago $2.50 billion Per-share loss also narrowed from $4.83 to $1.87 Revenue shot up from $54 million to $663 million Consensus was $1.96 loss on $724 million revenue

Rivian Automotive also noted a massive 44% annualised increase in its full-year loss to $663 million, as per its letter to shareholders. Shlisky added:

It seems like almost every number is a bit light across the board. They need to speed things up. [But] cash came in about $1.0 billion better than our estimate. That’s a positive. They’re working to get more components and better pricing.

Late last year, the electric vehicles manufacturer pulled the plug on its agreement with Mercedes-Benz (source). Year-to-date, Rivian stock is up only slightly at writing.

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