Rivian Automotive Inc.’s
losses deepened within the fourth quarter and the electric-car startup stated supply-chain challenges would sharply curtail its manufacturing unit output this yr.
The California-based truck maker stated after the shut of buying and selling Thursday that it expects to supply 25,000 automobiles in 2022. The corporate stated it could be capable of double that output if it weren’t for constraints on getting components and supplies.
Wall Road analysts earlier this month have been projecting it could ship about 40,000 automobiles in 2022.
Rivian shares fell almost 13% after reporting the outcomes. They closed Thursday down over 6% at $41.16.
The corporate expressed confidence in its manufacturing functionality and stated it’s working with suppliers to ease bottlenecks. Rivian produced 2,425 automobiles from the beginning of manufacturing final yr by Tuesday.
Rivian chief RJ Scaringe blamed the disruption on “a small variety of components,” together with semiconductors, circuit boards and wire harnesses coming from Mexico, the place the pandemic is exacerbating labor challenges. He stated batteries aren’t briefly provide.
The automobile firm reported income of $54 million for the October-to-December interval, up from $1 million within the third quarter.
Rivian’s web loss within the fourth quarter was $2.46 billion, in contrast with a lack of $353 million within the year-earlier interval.
Rivian’s inventory has tumbled in latest months, after an preliminary public providing in November that raised $13.7 billion in gross proceeds and shortly pushed its valuation larger than that of conventional rivals
Common Motors Co.
and
Ford Motor Co.
The automobile firm started delivering its first two automobiles—the R1T pickup truck and R1S SUV—late final yr from its manufacturing unit in Regular, In poor health. In mid-December, Rivian stated it had 71,000 preorders for the 2 fashions and disclosed it was constructing a second manufacturing unit in Georgia able to manufacturing an extra 400,000 automobiles a yr.
Amazon.com Inc.,
which owns about 19% of Rivian, has a deal to purchase 100,000 vans from Rivian. The startup has stated it anticipates fulfilling that order by the tip of 2025.
“Rivian has quite a bit on its plate,” RBC Capital Markets analyst Joseph Spak stated in a March 1 analysis word. “The manufacturing ramp was at all times one of many greatest near-term dangers.”
The analyst minimize his manufacturing estimate for subsequent yr to 80,000 automobiles, from 100,000.
The previous few months have proved difficult for the upstart, based in 2009 by Mr. Scaringe.
Rivian is going through competitors from Ford, GM and different more-established automobile firms within the still-nascent marketplace for electrical pickups. In January, GM unveiled an all-electric model of its in style Chevy Silverado. Ford final yr stated it was including manufacturing unit capability to construct the electrical F-150 Lightning in response to robust demand. The truck is scheduled to go on sale this spring.
On March 1, Rivian angered clients when it alerted them to a retroactive value enhance on pickup vans and SUVs preordered by clients. It cited larger inflation and commodity prices for the change.
The value hike triggered a backlash, resulting in cancellations and leading to a 25% drop in its inventory value within the days after.
Mr. Scaringe later apologized for the transfer, vowing to revive the unique pricing. Shares have but to get well and have been down 60% for the yr as of Thursday’s shut, pushing its market worth beneath $40 billion.
On Thursday, Rivian executives stated the corporate’s price of preorders didn’t drop following the worth enhance and greater than half of those that canceled selected to reinstate. The corporate had about 83,000 preorders as of this week, up from about 71,000 in mid-December, it stated.
Write to Mike Colias at Mike.Colias@wsj.com
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