Electric vehicle (EV) manufacturer Rivian (RIVN) experienced a downturn in its stock on Tuesday following the release of its Q4 and full-year 2023 results. Despite surpassing its 2023 production target, Rivian fell short of Wall Street’s delivery expectations. The company attributed the delivery gap to Amazon’s restrictions on electric delivery van (EDV) intake during the holiday season.
In Q4, Rivian achieved a production milestone of 17,541 vehicles but delivered 13,972, falling below Wall Street’s anticipated figure of over 14,000. Despite this, the company exceeded its full-year production goal, producing 57,232 vehicles in 2023 compared to the guidance of 54,000. Deliveries for the year reached 50,122, more than double the previous year’s numbers of 24,337, showcasing robust growth.
See also: Rivian Reports Q4 Delivery Decline, Missing Market Estimates
Rivian, based in Normal, IL, had raised its 2023 production guidance by 2,000 units in November, following positive Q3 results. The company has outpaced its competitors by ramping up production at its facility despite challenges such as higher interest rates and increased market competition. Ford’s F-150 Lightning, for instance, claimed the title of the best-selling electric truck through November, surpassing Rivian’s R1T.
Rivian’s Chief Financial Officer, Claire McDonough, explained during the Q3 earnings call that a more substantial gap between production and deliveries was expected in Q4 due to Amazon’s limitations on new commercial van intake during peak holiday delivery periods.
Despite the setback, Rivian terminated its exclusivity agreement with Amazon and recently partnered with AT&T as its second commercial partner. The company is also gearing up for the construction of its $5 billion EV plant in Bryan County, GA, which will house its R2 lineup. Rivian’s R2 is anticipated to have more accessible pricing, ranging from $40,000 to $50,000, signaling an expansion of the brand. A groundbreaking ceremony for the Georgia plant is expected in early 2024.
See also: Rivian’s CEO Positions Upcoming R2 Model as Equivalent to Tesla’s Model 3
e in Tuesday’s pre-market trading as investors had hoped for higher Q4 deliveries. Despite this, Rivian shares maintain a 17% increase over the last 12 months.
This news follows Tesla’s recent record-breaking delivery performance, with over 484,500 deliveries in Q4, surpassing its 1.8 million goal for 2023.
