Rivian’s Stock Faces Decline on Lower Fourth-Quarter EV Deliveries

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Shares of Rivian Automotive experienced a nearly 10% decline in early Tuesday trading following the company’s report on increased vehicle production in the fourth quarter. However, the number of deliveries fell, triggering concerns among investors.

Delivery Discrepancy:

Rivian disclosed that it delivered 13,972 vehicles from October to December, marking a 10.2% decrease from the third quarter of 2023. Despite this, the figure aligned with Wall Street’s expectations. Analysts, as surveyed by FactSet, had anticipated around 14,000 deliveries for the quarter.

Production Upsurge:

Despite the decline in deliveries, Rivian demonstrated an increase in production, manufacturing 17,541 electric vehicles during the fourth quarter—up from 16,304 in the previous quarter. The full-year production, totaling 57,232 vehicles, surpassed the company’s guidance of 54,000 vehicles for 2023.

Earnings Announcement:

Rivian is set to reveal its fourth-quarter earnings after the market closes on Feb. 21, potentially shedding light on the factors behind the delivery numbers and their impact on the company’s financial performance.

Market Context:

Notably, Rivian’s results coincided with Tesla’s strong fourth-quarter performance, where Tesla exceeded delivery expectations with 484,507 vehicles, outperforming the estimated 477,000 vehicles according to StreetAccount’s consensus as of Dec. 28.

By comparing the contrasting fortunes of Rivian and Tesla on the same day, the market’s reaction to the companies’ performances becomes a crucial element in understanding investor sentiment and industry dynamics.

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