Rivian Automotive Inc (NASDAQ:RIVN) has reported fourth-quarter production that missed targets, resulting in full-year 2022 output that fell short of guidance of 25,000 vehicles.
The electric truck startup said it produced 10,020 vehicles at its manufacturing facility in Normal, Illinois in the three months to December 31 and delivered 8,054 vehicles during the same period.
On a full-year 2022 basis, the company produced 24,337 vehicles and delivered 20,332 vehicles.
The company is facing the same challenges as other automakers across the globe, including supply chain troubles, rising raw materials costs and higher inflation.
CEO RJ Scaringe said supply chain issues caused its manufacturing plant to close for 20 days and shut down early on 50 days in the last 12 months, with bad weather forcing it to close for an additional five days.
While missing its output goal, 714 vehicles were off the production line but awaiting parts, software validation, wheel alignment and charging and weren’t included in the official production figure, he added.
Bumpy ride
The Amazon-backed startup Rivian also produces custom delivery vehicles for the e-commerce giant.
However, it hasn’t been a smooth ride for the company after it recalled some 13,000 vehicles last October due to worries that a loose fastener could result in drivers losing steering control.
In December, it said it was pausing plans to produce its electric commercial vans in Europe and would therefore no longer pursue a memorandum of understanding signed with with Mercedes-Benz just four months earlier.
Scaringe said focusing on its consumer business, as well as existing commercial business, represented the most attractive near-term opportunities to maximize value for the company.
On Tuesday, Tesla Inc reported fourth-quarter deliveries that also fell short of expectations, sending its shares 12% lower.
In the quarter, Elon Musk’s electric car maker delivered 405,000 vehicles, missing the forecast of 418,000, consisting of 388,000 Model 3/Y and 17,000 Model X/S.
Marc Ostwald, global strategist at ADM Investor Services International, noted that Rivian stock emerged less bruised than Tesla as both missed their EV targets.
After dipping 4% in early Wednesday trade, Rivian’s traded 2% higher before lunchtime.
Contact the author at stephen.gunnion@proactiveinvestors.com