Rivian (RIVN) inventory tanked after the bell on Wednesday after the electrical journey automobile maker reported combined fourth quarter outcomes and a manufacturing and revenue forecast that missed Wall Road expectations.
Rivian mentioned it sees automobile manufacturing for 2024 hitting 57,000 models, nicely under the 80,000 models anticipated. When it comes to full-year profitability, Rivian mentioned it sees an adjusted EBITDA lack of $2.70 billion vs. $2.59 billion (est.), with capital expenditure outlays hitting $1.75 billion vs. $2.37 billion (est.). Rivian mentioned it will reduce 10% of salaried workers, citing financial uncertainty.
Rivian inventory fell over 15% in after-hours buying and selling.
For the quarter, Rivian reported top-line income of $1.32 billion vs $1.25 billion (est.), with an adjusted loss per share of $1.36 vs. $1.33 (est.). On an adjusted EBITDA foundation, Rivian reported a lack of $1.096 billion vs. $1.05 billion (est.), narrower than final yr’s $1.46 billion loss.
“We made nice progress in 2023 regardless of financial headwinds, and we’re excited concerning the yr forward. We firmly consider within the full electrification of the automotive business, however acknowledge within the short-term, the difficult macro-economic circumstances,” Rivian CEO RJ Scaringe mentioned in assertion. “We’re aggressively centered on driving value effectivity all through the enterprise, attaining constructive margins and constructing our go-to-market operate to help our long-term development.”
When it comes to its money cushion, Rivian mentioned it had $7.86 billion in money and money equivalents on the finish of This autumn, down from the $9.1 billion it had on the finish of Q3.
Some autos in Q1 gained’t be deliverable to clients as a result of they’re lacking parts; they are going to be delivered quickly thereafter.
Earlier this month, Rivian reported 13,972 deliveries in This autumn, up considerably from a yr in the past however under consensus estimates of 14,300. Manufacturing was notably larger at 17,541 models, above estimates of 16,574.
Rivian CFO Claire McDonough mentioned on the earnings name that Rivian expects Q1 2024 deliveries to be 10% to fifteen% under This autumn 2023 deliveries.
“Throughout this quarter a few of the provider changeover that we’re engaged on (stemming from Q2 shutdown and enhancements), we’re going to begin to really feel the impression of them,” CEO RJ Scaringe added on the decision. Some autos in Q1 gained’t be deliverable to clients as a result of they’re lacking parts, he mentioned.
For the yr, Rivian topped its manufacturing purpose of 54,000 with 57,232 autos produced in 2023 and deliveries coming in at 50,122. Rivian’s manufacturing forecast for 2024 is pegged at simply over 80,000 autos for the yr, per Bloomberg consensus estimates.
Rivian additionally reiterated its forecast of reaching “modest gross revenue” by the tip of 2024. McDonough famous that the corporate was “very shut” to attaining constructive contribution margin on the finish of the 2023.
Rivian’s profitability plans are paramount to the investor thesis for the corporate — and for its survival. Pure-play EV makers like Rivian, Lucid (LCID), and Fisker (FSR) have seen their shares hammered over the previous yr as a string of loss-producing quarters and a tricky EV demand atmosphere have left buyers with little persistence for underperformance.
On March 7, Rivian will reveal its extra reasonably priced R2 EV, which will probably be constructed at its upcoming $5 billion Georgia meeting plant. Rivian is aiming for the plant to be accomplished by 2025, with new R2 autos rolling off the road in 2026.
“The implications of weak demand are important,” Barclays analyst Dan Levy wrote in a be aware to buyers final week, wherein the funding financial institution downgraded Rivian inventory to Maintain from Purchase. Levy additionally raised issues that Rivian may miss its 2024 goal for gross margin profitability.
“It seems that even nice product and tech shouldn’t be sufficient to keep away from the EV winter,” he mentioned.
Pras Subramanian is a reporter for Yahoo Finance. You may comply with him on Twitter and on Instagram.
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