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
March 10, 2022
(Corrects investors’ expected revenue to $60 million instead of $60 billion, paragraph 7)
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 nearly 12% in extended trading.
Rivian made about 200 fewer vehicles than the production target of 1,200 vehicles it set for 2021, the company said in a filing in January.
“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.
Rivian had earlier said it was facing inflationary pressures including mounting component costs, unprecedented supply-chain shortages and delays.
“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 Co and General Motors Co face tough competition from market leader Tesla Inc as they aim to start delivering more electric vehicles in the near future.
The company reported a fourth-quarter net loss of $2.46 billion, or a loss of $4.83 per share, compared with a year-ago loss of $353 million, or a loss of $3.50 per share. It posted revenue of $54 million, well below investors’ expectations of $60 million.
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.
(Reporting by Akash Sriram in Bengaluru and Paul Lienert in Detroit; Editing by Amy Caren Daniel and Matthew Lewis)
