Rivian stocks tumble as supply-chain woes reduce manufacturing outlook in part
Through Akash Sriram and Paul Lienert
(Reuters) – Rivian Automobile Inc warned on Thursday that supply-chain problems may reduce its deliberate manufacturing in part in 2022 to twenty-five,000 cars, sending stocks of the EV maker down greater than 12% in prolonged buying and selling.
Rivian mentioned as of March 8, it had constructed 1,410 cars this yr, and a couple of,425 because the get started of manufacturing. It mentioned that all over the 2 weeks previous to March 8 it averaged a weekly manufacturing fee that was once about two times the go out fee of the fourth quarter of 2021, nevertheless it expects supply-chain constraints to proceed thru 2022.
“As we proceed to ramp up our production facility, organize delivery chain demanding situations, face endured inflationary pressures and reduce value will increase to consumers within the close to time period, we think to acknowledge adverse gross margins all the way through 2022,” the corporate mentioned in a letter to shareholders.
“The 2022 manufacturing steering was once disappointing and smartly wanting what they mentioned of their highway display, and the fourth-quarter loss was once wider than anticipated,” mentioned Garrett Nelson, analyst at CFRA Analysis.
Rivian, different startups and legacy automakers equivalent to Ford Motor Co and Normal Motors Co face difficult festival from marketplace chief Tesla Inc as they target to begin handing over extra electrical cars within the close to long term.
Rivian reported a fourth-quarter internet lack of $2.46 billion, or $4.83 in step with proportion, when compared with a year-ago lack of $353 million, or $3.50 in step with proportion. It posted earnings of $54 million, smartly under traders’ expectancies of $60 million.
Leader Govt R.J. Scaringe mentioned in a Thursday convention name with analysts that Rivian expects a “vital” manufacturing ramp-up in the second one quarter of the EDV-700 van for Amazon.com Inc.
Rivian mentioned it was once “exploring tactics to additional increase” its industrial dating with Amazon, which owns a 20% stake within the startup and has ordered 100,000 trucks. Rivian mentioned it’ll start generating a 2d Amazon van this yr, the EDV-500, which is shorter and narrower than the EDV-700.
Rivian mentioned it had 83,000 pre-orders for its R1T pickup and R1S software car as of March 8, up from 71,000 in mid-December.
As of Thursday’s marketplace shut, Rivian’s proportion value had dropped about 77% and misplaced $124.5 billion in marketplace capitalization since hitting its top after going public in November.
The corporate ended the quarter with $18.4 billion in money and equivalents.
(Reporting through Akash Sriram in Bengaluru and Paul Lienert and Ben Klayman in Detroit; Enhancing through Amy Caren Daniel and Matthew Lewis)
