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Two major electric vehicle manufacturers were moving in opposite directions on a volatile Tuesday morning in the electric vehicle market as news of Rivian delivery delays sent stock prices lower, with Tesla beating market expectations and posting a pre-market It showed an increase in trading.
important facts
Rivian on Tuesday reported deliveries of 13,972 vehicles in the fourth quarter of 2023, lower than analysts’ expectations of 14,000 vehicles, according to FactSet.
Rivian stock fell about 10% Tuesday morning, marking the California-based EV maker’s biggest single-day drop since Nov. 9, when the company also fell nearly 10%.
Meanwhile, Tesla reported record deliveries of 484,000 vehicles, exceeding market expectations of approximately 473,000 vehicles, according to FactSet, and ended the year with a delivery goal of 1.8 million vehicles.
Tesla rose 0.6% in premarket trading Tuesday morning and was slightly higher just before 11 a.m.
Wedbush analysts said in a note that Tesla’s numbers are a “clear victory” for CEO Elon Musk and the company, and that hitting the delivery target “is a sign of the volatile EV macro “This is a major achievement.”
It wasn’t all good news for Tesla on Tuesday, either. Chinese EV maker BYD also announced that it overtook Tesla in vehicle deliveries for the first time in the fourth quarter of 2023, but Tesla still outperformed BYD in vehicle deliveries throughout the year.
Main background
The figures were announced amid concerns that demand in the EV industry will be weak, due in part to high interest rates that impact the affordability of EVs. Intensifying competition in the market, including Tesla’s new Cybertruck, and intensifying price competition with Chinese EV manufacturers are creating a tough environment for EV automakers. Changes to EV tax credit rules will also take effect on January 1, he said, which could make many vehicles, including the Cybertruck, ineligible for the tax credit, adding further challenges to EV affordability. In October, Rivian’s stock price fell on news of an earlier-than-expected bond issue, raising concerns about the company’s financial health. But CEO RJ Scaringe pushed back on those concerns, telling Reuters the issue was aimed at strengthening the company’s balance sheet before borrowing costs become higher.
what we don’t know
Tesla’s Tuesday press statement did not provide specific numbers for deliveries and production of the new Cybertruck, and did not reveal how the new car has fared since its debut in November amid recent reports about production difficulties. It is unclear whether the situation has changed.
Points to note
Rivian will report its fourth-quarter and full-year results on February 21, after the market closes, and Tesla will report its results on January 24.
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