RIVN stumbles as production guidance disappoints
Rivian Automotive, a leading electric vehicle (EV) manufacturer, reported its Q4 2023 earnings and provided guidance for FY24. The stock tumbled 23% in after hours trading as the company projected it would produce 57,000 vehicles in the fiscal year, falling well short of analyst estimates of 80,000 vehcles.
Rivian reported a loss of ($1.36) per share for Q4, slightly worse than the consensus of ($1.35) per share. However, the company's revenue rose by an impressive 98.3% year-over-year to reach $1.31 billion, surpassing the $1.28 billion expectations.
The company produced 57,232 vehicles and delivered 50,122 in 2023, more than doubling production and deliveries from 2022 and exceeding its initial production guidance by more than 7,000 vehicles. Rivian's production and manufacturing progress continued to improve throughout 2023.
In Q4 2023, there was a 147% increase in deliveries compared to the same quarter in 2022. However, the fourth quarter of 2023 reflected a greater discrepancy between production and deliveries compared to previous quarters due to seasonality.
EDV deliveries during the last quarter of each fiscal year are lower than previous quarters, while production remains continuous to maintain manufacturing efficiencies.
Rivian's FY24 guidance includes plans to produce 57,000 vehicles, which was well below analyst projections of 80,000 vehicles. The company forecasts an adjusted EBITDA loss of $2.7 billion and capital expenditure of $1.75 billion. The company expects to make further progress on commercial, engineering, and operational cost down efforts, and increase non-vehicle revenue streams such as regulatory credits, service, remarketing, financing, insurance, and software. Rivian anticipates achieving a modest gross profit in the fourth quarter of 2024.
Rivian Automotive's Q4 2023 posted solid numbers but its production guidance raises another red flag for the struggling EV industry.