Shares of electric car maker Rivian fall on weak earnings and outlook

Shares of Rivian Automotive Inc. fell in late trading after the electric car maker reported earnings and outlook below expectations in its first earnings report after its November IPO.

For the quarter ended Dec. 31, Rivian reported a loss before interest, taxes, depreciation, and amortization of $1.108 billion, or $2.43 per share, compared to an adjusted loss of $341 million in the same quarter. last year. Revenues reached $54 million based on the delivery of 909 vehicles.

Analysts had expected an adjusted loss of $2.06 per share on revenue of $63.99 million. The lower-than-expected results were blamed on COVID-19 and the weather, among other things.

“During the first half of the first quarter of 2022, we experienced several headwinds and other factors impacting our production ramp, including a planned 10-day shutdown to refine our production lines, significant limitations supply chain, a significant spike in COVID-19 cases likely attributable to the Omicron variant and severe winter conditions in central Illinois,” Rivian said in a letter to shareholders.

For the full year 2021, Rivian reported a net loss of $4.688 billion, well above its net loss of $992 million in 2020. Revenue was $55 million based on delivery of 920 vehicles. Rivian only started shipping vehicles in 2021.

The company noted that it has reached several important milestones in 2021, including the start of deliveries of its three vehicles, the R1T, R1S and EDV. Rivian raised $13.7 billion in its IPO and chose a site for a second US manufacturing facility just outside Atlanta, Georgia.

Looking ahead, Rivian said it expects to have an adjusted loss of $4.75 billion in 2022 and manufacture 25,000 vehicles. However, he would like to increase production: until March 8, he had produced only 1,410 vehicles since the beginning of the year.

The reasons, or excuses, for poor performance were a theme throughout the letter to shareholders.

“In fiscal 2022, we plan to remain focused on ramping up production of the R1 and RCV lines in Normal, as well as investing in our technology and product portfolio for future growth,” said Rivian. “We believe that throughout 2022 the supply chain will be a fundamental limiting factor to our total production for the normal factory and that our equipment and manufacturing processes would have the capacity to produce enough vehicles to deliver more than 50 000 vehicles on our R1 and RCV platforms. in 2022 if we weren’t constrained by our supply chain.

Investors didn’t like the numbers. Rivian’s stock price fell almost 13% after the bell. The stock is now down nearly two-thirds since its November listing and 78% since its December high.

Photo: Rivian

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Virginia C. Taylor