Electric vehicle manufacturer Rivian Automotive Inc (NASDAQ:RIVN) missed 4Q revenue expectations by a wide margin, sending shares sliding in afterhours trading Tuesday.
For the three-month period to end December 31, 2022, Rivian reported $663 million in revenue versus the expected $714 million.
However, the firm’s loss per share came in at $1.73 against the $1.89 consensus loss expected by the Street.
READ: Rivian’s massive opportunity currently outweighs challenges - broker
Perhaps more worrying, the carmarker said it is anticipating production of 50,000 vehicles for 2023, way below the 63,000 figure that analysts had expected.
The firm also said that it expects its gross margin to remain negative in 2023, but expects to improve on a dollar basis for the year as production volumes in its factory rises.
Rivian shares were down around 7.8% after hours at $17.80 after closing Tuesday at $19.30.
Disappointments aside, not all analysts were bearish on the stock.
Broker Wedbush rates Rivian at ‘Outperform’ with a US$37 twelve-month price target suggesting some 113% upside to the current price of around US$17.
Wedbush analyst Daniel Ives said earlier that Rivian has a “strong brand and unique opportunity” to capitalize on the electric vehicle opportunity, but noted a number of challenges ahead.
“Competition is increasing and production needs to ramp otherwise potential customers will bolt to Ford, GM, and others,” Ives wrote.
“This is a fork in the road period for RJ & team to navigate this Rivian ship in choppy waters otherwise darker times could be ahead.
“We believe the massive EV opportunities for Rivian outweigh the challenges at current levels and maintain our positive stance on the name.”
Contact Angela at angela@proactiveinvestors.com
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