Rivian reported Tuesday it produced 17,541 autos at its Regular, Illinois manufacturing facility and delivered 13,972 to prospects within the fourth quarter, blended outcomes that left traders cautious and despatched shares down in pre-market buying and selling.
Rivian had proven constant development in manufacturing and deliveries within the first three quarters of the 12 months. And whereas manufacturing numbers continued on that upward trajectory within the fourth quarter, deliveries dipped by 10.2% from the earlier quarter. That drop may sign softening demand for the corporate’s slate of premium EVs. Rivian produces 4 autos: its two shopper autos, the R1T truck and R1S SUV, and two variations of its industrial van.
Slowing demand for high-priced EVs has plagued automakers, forcing many to cut back manufacturing or reduce costs. Rivian has managed to keep away from slashing costs. If deliveries proceed to fall into 2024, the automaker could need to take that technique in an effort to spice up its numbers. That will spell bother for Rivian, which isn’t but worthwhile.
The price of constructing one Rivian car continues to be a barrier to the corporate’s path towards profitability. Rivian’s shopper R1T and R1S autos promote for greater than $80,000, on common. However the price of constructing far exceeds any income it brings. Within the second quarter, as an illustration, the corporate misplaced $32,495 on each car it constructed.
Rivian mentioned throughout its third-quarter earnings that it narrowed that per unit loss by $2,000 in comparison with the second quarter by simplifying its product portfolio and decreasing materials and labor prices. Chopping the sticker value would solely put extra strain on margins.
On a full-year foundation, Rivian produced 57,232 autos and delivered 50,122. This exceeded automaker’s most up-to-date full-year 2023 manufacturing steerage of 54,000 autos.
The corporate additionally introduced that it’ll report fourth quarters incomes after markets shut February 21.
