Breaking News
Investing Pro 0
Free Webinar - What Is a Gold IRA? Fees, Advantages, and Risks - December 7, 2022 | 01:00PM EST Enroll Now

Rivian shares tumble as supply-chain woes cut production outlook in half

Stock Markets Mar 10, 2022 06:06PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A Rivian R1T pickup, the Amazon-backed electric vehicle (EV) maker, is driven outside the Nasdaq Market site during the company’s IPO in Times Square in New York City, U.S., November 10, 2021. REUTERS/Brendan McDermid
 
GM
+0.18%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
F
-0.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TSLA
-3.64%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Akash Sriram and Paul Lienert

(Reuters) - Rivian Automotive Inc warned on Thursday that supply-chain issues could cut its planned production in half in 2022 to 25,000 vehicles, sending shares of the EV maker down more than 12% in extended trading.

Rivian said as of March 8, it had built 1,410 vehicles this year, and 2,425 since the start of production. It said that during the two weeks prior to March 8 it averaged a weekly production rate that was about twice the exit rate of the fourth quarter of 2021, but it expects supply-chain constraints to continue through 2022.

"As we continue to ramp up our manufacturing facility, manage supply chain challenges, face continued inflationary pressures and minimize price increases to customers in the near term, we expect to recognize negative gross margins throughout 2022," the company said in a letter to shareholders.

"The 2022 production guidance was disappointing and well short of what they said in their road show, and the fourth-quarter loss was wider than expected," said Garrett Nelson, analyst at CFRA Research.

Rivian, other startups and legacy automakers such as Ford Motor (NYSE:F) Co and General Motors Co (NYSE:GM) face tough competition from market leader Tesla (NASDAQ:TSLA) Inc as they aim to start delivering more electric vehicles in the near future.

Rivian reported a fourth-quarter net loss of $2.46 billion, or $4.83 per share, compared with a year-ago loss of $353 million, or $3.50 per share. It posted revenue of $54 million, well below investors' expectations of $60 million.

Chief Executive R.J. Scaringe said in a Thursday conference call with analysts that Rivian expects a "significant" production ramp-up in the second quarter of the EDV-700 van for Amazon.com Inc (NASDAQ:AMZN).

Rivian said it was "exploring ways to further expand" its commercial relationship with Amazon, which owns a 20% stake in the startup and has ordered 100,000 vans. Rivian said it will begin producing a second Amazon van this year, the EDV-500, which is shorter and narrower than the EDV-700.

Rivian said it had 83,000 pre-orders for its R1T pickup and R1S utility vehicle as of March 8, up from 71,000 in mid-December.

As of Thursday's market close, Rivian's share price had dropped about 77% and lost $124.5 billion in market capitalization since hitting its peak after going public in November.

The company ended the quarter with $18.4 billion in cash and equivalents.

Rivian shares tumble as supply-chain woes cut production outlook in half
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Chris Johnson
Chris Johnson Mar 10, 2022 5:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Inflation and supply chain issues... What a joke to use these excuses with their tiny production.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email