Rivian Automotive Narrowly Misses 25,000 Electric Truck Production Target

Electric truck developer Rivian Automotive reported it built 24,337 electric vehicles in 2022, narrowly missing its annual target of 25,000 as it ramped up production in the final months of the year. RIVN pumped out 10,020 vehicles in the last quarter. Rivian builds vehicles across two consumer lines and a delivery van for Amazon.com Inc. The company has been making wider losses than estimated in its earnings since going public. Rivian said it delivered 20,332 vehicles to customers during 2022. RIVN stock was trading near to its close after hours of $17.34 after losing-1.09 or -5.91% on the day.

Rivian truck

The EV upstart raised $11.9 billion to become the largest IPO of 2021, and the largest IPO since Alibaba (BABA) in 2014.

To have reached its goal of 25K vehicles produced this year, RIVN will need to average about 9,500 vehicles produced in Q3 and Q4. The company produced 4,401 vehicles in Q1.

Tesla Misses

Electric vehicle leader Tesla (TSLA) reported earlier that it made 405,278 deliveries in Q4, a 31% increase from the previous year but below Bloomberg’s estimate of nearly 421K. Total vehicle deliveries rose 40% for 2022 as a whole. Separately, Reuters reported that the firm’s China chief, Tom Zhu, will take on additional roles, overseeing the EV maker’s U.S. assembly plants and sales operations in North America and Europe.

Tesla stock collapsed 65% in 2022 and was down another 12.24% today to $108.10 -15.08 after its disappointing report.

Chinese EV makers also reported their production numbers today:

  • XPeng (XPEV) +2.54% after reporting 11.3K deliveries for December (-29% Y/Y, +94% M/M)
  • Li Auto (LI) +1.88% after reporting 21,233 deliveries for December (+51% Y/Y, +41% M/M)
  • Nio (NIO) – 0.31% after reporting 15,815 deliveries for December (+50.8% Y/Y, +12% M/M).

Tax Credit Risks

Another risk is tax credit changes that are included in the Inflation Reduction Act. Specifically, RIVN’s vehicles won’t qualify for EV tax credits due to lofty sticker prices that exceed $80K. On the positive side, RIVN’s Electric Delivery Vehicles (EDVs) may qualify for up to $40K in incentives under the new law. Amazon (AMZN), who is a major shareholder ordered 98K EDVs and recently announced that it will begin rolling out these trucks across 100 cities by the end of the year.

 Source: Rivian

From The TradersCommunity News Desk