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Rivian (RIVN) stock is falling on Tuesday following the release of its fourth quarter and full-year 2023 results. Despite meeting its 2023 production target, Rivian’s deliveries fell short of Wall Street expectations.
Rivian stock falls as fourth-quarter deliveries fall short of expectations
Rivian produced 17,541 vehicles in the fourth quarter and delivered 13,972 vehicles in the last three months of 2023. Deliveries rose nearly 74% from a year earlier, but fell short of Wall Street’s forecast of more than 14,000 vehicles.
Despite this, the EV maker achieved its full-year production target. Rivian said he would build 57,232 vehicles in 2023, surpassing his goal of 54,000 vehicles. The number of vehicles delivered reached 50,122, more than double last year’s figure (24,337).
Rivian raised its 2023 production outlook by 2K in November following third-quarter results. The company continues to ramp up production at its facility in Normal, Illinois, outpacing its peers.
- Number of deliveries in Q4: 13,972
- 4th quarter production: 17,541 units
- Number of vehicles delivered in 2023: 50,122 units
- Production volume in 2023: 57,232 units
This growth comes despite rising interest rates and increased competition. Ford said its F-150 Lightning was the best-selling electric truck through November, beating the R1T.
After ending its exclusive deal with Amazon, Rivian last month signed a deal with AT&T as its second commercial partner. The company is also preparing to begin construction on its second manufacturing facility.
A massive $5 billion EV factory in Bryan County, Georgia will house the R2 lineup. Rivian’s R2 will have a lower starting price of around $40,000 to $50,000 as the brand expands. Rivian plans to hold a groundbreaking ceremony in early 2024.
Despite the progress, Rivian stock fell 7% in premarket trading on Tuesday as investors expected increased delivery times in the fourth quarter. Rivian stock is still up 17% over the past 12 months.
The news comes after Tesla delivered more than 484,500 vehicles in the fourth quarter, meeting its 2023 goal of 1.8 million and setting yet another delivery record.
Electrek’s view
Although fourth-quarter deliveries were lower than expected, Rivian remains on the right track. The company plans to begin construction of a second manufacturing plant to expand into new markets.
Rivian’s growth has come despite its vehicles costing $70,000 each. A cheaper lineup should help accelerate sales, but the R2 is not expected to go on sale until 2026. Until then, Rivian will face further competition with the rollout of the Tesla Cybertruck. The launch of new EVs such as the Chevrolet Silverado RST EV, GMC Sierra EV Denali, and Kia EV9 could put additional pressure on deliveries.
The EV startup continues to improve costs as it aims to achieve profitability. In the third quarter, Rivian lost about $30,500 per vehicle. While this is still high, it is significantly down from $139,277 in Q3 2022.
Investors will be keeping an eye on Rivian’s fourth-quarter and full-year profit margins to see if it returns to profitability. Rivian plans to report fourth quarter financial results on February 21st. Please check back for more details.
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