Rivian announced Tuesday that it manufactured 17,541 vehicles at its Normal, Illinois, plant and delivered 13,972 to clients in the fourth quarter, resulting in mixed performance that worried investors and pushed shares down in pre-market trade.
Rivian’s stock fell 9.75% to $21.17 at 1:40 p.m. ET.
In the first three quarters of the year, Rivian demonstrated a sustained increase in production and deliveries. While production figures continued to rise in the fourth quarter, deliveries fell by 10.2% from the previous quarter. This decline might indicate a slowing in demand for the company’s premium EV lineup. Rivian manufactures four cars: two consumer vehicles, the R1T truck and R1S SUV, and two business van models.
Slowing demand for high-priced EVs has hampered manufacturers, pushing several to reduce output or lower pricing. Rivian has managed to dodge price cuts. If deliveries continue to slip into 2024, the carmaker may be forced to pursue that technique in order to increase its numbers. That would be bad news for Rivian, which is still losing money.
The cost of producing one Rivian car remains a hurdle to the company’s route to profitability. Rivian’s consumer R1T and R1S automobiles often sell for more than $80,000. However, the expense of construction significantly outweighs any cash generated. For example, in the second quarter, the firm lost $32,495 on each vehicle made.
Rivian said during its third-quarter earnings that it reduced its per-unit loss by $2,000 compared to the second quarter by streamlining its product line and lowering material and labor expenses. Cutting the price would merely put further strain on the margins.
Rivian built 57,232 automobiles and delivered 50,122 throughout the fiscal year. This figure surpassed the automaker’s most recent full-year 2023 production forecast of 54,000 units.
The firm also stated that its fourth-quarter earnings would be released after the markets close on February 21.
