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Rivian Automotive Inc.’s stock fell more than 15% after hours Wednesday after the EV maker posted a larger-than-expected quarterly loss and guided for producing slightly fewer vehicles this year than it did in 2023, saying rising interest rates and other economic pressures had “informed” their decisions for the year.
Rivian
RIVN,
lost $1.52 billion, or $1.58 a share, in the fourth quarter, compared with a loss of $1.72 billion, or $1.87 a share, in the same period last year.
Revenue rose to $1.3 billion, from $663 million a year ago.
FactSet consensus called for a loss of $1.35 a share on revenue of $1.28 billion.
The company guided for the production of 57,000 EVs; it produced 57,232 EVs in 2023. Wall Street estimates for 2024 production hovered around 66,000 vehicles and 68,000 vehicles.
“Economic and geopolitical uncertainties and pressures, most notably the impact of historically high interest rates, have informed our expectations for 2024,” the company’s executives said in a letter to shareholders announcing the results.
The company plans to cut operational costs and apply what it has learned to its new factory going up in Georgia, which is slated to start production in 2026. Rivian also said it plans to unveil its new mid-size SUV, the R2, “in just a few weeks.”
“R2 is designed to achieve a considerably lower price point and cost structure while building on the brand position established with our flagship” EVs, the R1T pickup truck and the R1S full-size SUV, the company said.
Rivian shares have lost about 19% in the past 12 months, contrasting with gains of around 24% for the S&P 500 index
SPX.
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