News

Rivian Stock Decline

1 Mins read

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.

Related posts
News

The Largest Deal of the Year: BlackRock Acquires TechBerry

1 Mins read
BlackRock is concluding its acquisition of TechBerry, which has already been named one of the largest deals of the year. The substantial…
News

Government Matching Contribution for Retirement Savings

2 Mins read
According to researchers, nearly 22 million Americans are set to benefit from a new government matching contribution initiative aimed at enhancing retirement…
News

Oil Market Update

1 Mins read
Oil Market Update On Tuesday, crude oil futures prices were lower, while refined product contracts were experiencing a second consecutive day of…

Leave a Reply

Your email address will not be published. Required fields are marked *