- Rivian (RIVN.US) stock fell sharply as EV producer posted weak revenue figures for the Q4
- Company expects to produce only 50,000 vehicles in fiscal 2023
Rivian (RIVN.US) stock fell over 9.0% in premarket after EV producers reported mixed financial results for Q4 and full-year production below estimates.
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Rivian reported a smaller-than-expected loss of $1.6 billion in Q4 up from $1.2 billion in the year-earlier period, however below market estimates of $1.8 billion. However, quarterly revenue of $663 million fell short of analysts’ estimates of $742 million.
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Full-year production is expected to reach 50,000 vehicles, well below the consensus of 62,797. It would mean Rivian producing on average just 12,500 vehicles per quarter in 2023 – only 25% above the level from Q4.
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"Supply chain continues to be the main limiting factor of our production," the company said, saying that during the 2022 fourth quarter it "encountered multiple days of lost production due to supplier shortages."
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"As expected, during the fourth quarter of 2022, in-transit time from rail shipments combined with increased volumes from the ramp of our second shift towards the end of the quarter caused a larger discrepancy between production and deliveries," management wrote. Company expects these problems to persist in 2023.
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Also companies burns cash at a fast pace. At the end of 2022 company had cash and cash equivalents of $12.1 billion, down from $13.8 billion at the end of Q3 and $15.5 billion as of June 30.
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Create account Try a demo Download mobile app Download mobile appRivian (RIVN.US) stock launched today's session with a massive bearish price gap and if current sentiment prevails sell-off may deepen towards all-time lows at $15.25. Source: xStation5
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