Rivian (RIVN) inventory tanked after the bell on Wednesday after the electrical journey car maker reported blended fourth quarter outcomes and a manufacturing and revenue forecast that missed Wall Avenue expectations.
Rivian mentioned it sees car manufacturing for 2024 hitting 57,000 items, properly beneath the 80,000 items anticipated. When it comes to full-year profitability, Rivian mentioned it sees an adjusted EBITDA lack of $2.70 billion vs. $2.59 billion (est.), with capital expenditure outlays hitting $1.75 billion vs. $2.37 billion (est.). Rivian mentioned it will lower 10% of salaried workers, citing financial uncertainty.
Rivian inventory fell over 15% in after-hours buying and selling.
For the quarter, Rivian reported top-line income of $1.32 billion vs $1.25 billion (est.), with an adjusted loss per share of $1.36 vs. $1.33 (est.). On an adjusted EBITDA foundation, Rivian reported a lack of $1.096 billion vs. $1.05 billion (est.), narrower than final yr’s $1.46 billion loss.
“We made nice progress in 2023 regardless of financial headwinds, and we’re excited in regards to the yr forward. We firmly consider within the full electrification of the automotive business, however acknowledge within the short-term, the difficult macro-economic circumstances,” Rivian CEO RJ Scaringe mentioned in assertion. “We’re aggressively targeted on driving price effectivity all through the enterprise, attaining optimistic margins and constructing our go-to-market operate to assist our long-term development.”
When it comes to its money cushion, Rivian mentioned it had $7.86 billion in money and money equivalents on the finish of This autumn, down from the $9.1 billion it had on the finish of Q3.
Some autos in Q1 gained’t be deliverable to clients as a result of they’re lacking parts; they are going to be delivered quickly thereafter.
Earlier this month, Rivian reported 13,972 deliveries in This autumn, up considerably from a yr in the past however beneath consensus estimates of 14,300. Manufacturing was notably increased at 17,541 items, above estimates of 16,574.
Rivian CFO Claire McDonough mentioned on the earnings name that Rivian expects Q1 2024 deliveries to be 10% to fifteen% beneath This autumn 2023 deliveries.
“Throughout this quarter among the provider changeover that we’re engaged on (stemming from Q2 shutdown and enhancements), we’re going to begin to really feel the affect of them,” CEO RJ Scaringe added on the decision. Some autos in Q1 gained’t be deliverable to clients as a result of they’re lacking parts, he mentioned.
For the yr, Rivian topped its manufacturing aim of 54,000 with 57,232 autos produced in 2023 and deliveries coming in at 50,122. Rivian’s manufacturing forecast for 2024 is pegged at simply over 80,000 autos for the yr, per Bloomberg consensus estimates.
Rivian additionally reiterated its forecast of reaching “modest gross revenue” by the tip of 2024. McDonough famous that the corporate was “very shut” to attaining optimistic contribution margin on the finish of the 2023.
Rivian’s profitability plans are paramount to the investor thesis for the corporate — and for its survival. Pure-play EV makers like Rivian, Lucid (LCID), and Fisker (FSR) have seen their shares hammered over the previous yr as a string of loss-producing quarters and a troublesome EV demand atmosphere have left traders with little endurance for underperformance.
On March 7, Rivian will reveal its extra reasonably priced R2 EV, which will probably be constructed at its upcoming $5 billion Georgia meeting plant. Rivian is aiming for the plant to be accomplished by 2025, with new R2 autos rolling off the road in 2026.
“The results of weak demand are important,” Barclays analyst Dan Levy wrote in a notice to traders final week, wherein the funding financial institution downgraded Rivian inventory to Maintain from Purchase. Levy additionally raised considerations that Rivian may miss its 2024 goal for gross margin profitability.
“It seems that even nice product and tech just isn’t sufficient to keep away from the EV winter,” he mentioned.
Pras Subramanian is a reporter for Yahoo Finance. You’ll be able to observe him on Twitter and on Instagram.
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