Rivian Automotive Inc.’s stock experienced a significant drop of more than 15% after hours on Wednesday. This decline followed the EV manufacturer’s announcement of a larger-than-anticipated quarterly loss. The company also provided guidance indicating a decrease in vehicle production for the current year compared to 2023. Rivian attributed these decisions to the impact of rising interest rates and other economic factors.
Financial Performance
In the fourth quarter, Rivian reported a loss of $1.52 billion, equivalent to $1.58 per share. This marked an improvement from the loss of $1.72 billion, or $1.87 per share, during the same period the previous year. Despite the loss, revenue saw a notable increase, reaching $1.3 billion compared to $663 million in the previous year. Analysts, according to FactSet consensus, had expected a loss of $1.35 per share on revenue amounting to $1.28 billion.
Production Forecast
Rivian’s production guidance for 2024 estimated the manufacturing of 57,000 electric vehicles. This target falls slightly below the 57,232 EVs produced by the company in 2023. The company’s executives highlighted economic and geopolitical uncertainties, emphasizing the impact of historically high interest rates as key factors shaping their outlook for the year ahead.
Stock Performance
Over the past twelve months, Rivian’s shares have declined by roughly 19%, contrasting with the S&P 500 index’s gains of approximately 24%. These developments underscore the challenges faced by Rivian Automotive Inc. as it navigates changing market conditions and economic dynamics.