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Rivian stock falls again as production and sales woes bite

The EV darling has had it rough since its stellar IPO last year.

Rivian stock falls again as production and sales woes bite
[Source Images: Rivian]

It hasn’t been a great month for the electric vehicle maker Rivian Automotive. First, the company had to walk back plans to charge people more who pre-ordered its SUVs after facing backlash over the plan. And last night, the company announced its Q4 2021 financials, which sent the stock down over 8% this morning in pre-market trading as of the time of this writing.

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As Bloomberg reports, Rivian had a worse-than-expected Q4. Supply-chain issues appear to be the largest hurdle for the company. Due to the global supply-chain crisis, Rivian can’t get enough of the parts it needs to build its vehicles. For 2022, the company said it expects about 25,000 to roll off the assembly line, but that number would be twice as high if not for the aforementioned issues.

Another thing that spooked investors was that Rivian reported making just over 1,000 vehicles since production started in September—below its target (again, the supply chain carries much of the blame here). But the company also lost more money than expected. Analysts were expecting an adjusted loss per share of $2.05, but the company actually had an adjusted loss per share of $2.43. It also had Q4 revenue of $54 million—that’s $10 million below what was expected.

Rivian’s current fortunes have fallen significantly since its much-hyped IPO last year. At the time, it was one of the largest IPOs in U.S. history, with the stock topping out at almost $130 per share. Since then, the stock has fallen by two-thirds. At the time of this writing, one RIVN share sits at $37.70 in pre-market trading.

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About the author

Michael Grothaus is a novelist, journalist, and former screenwriter. His debut novel EPIPHANY JONES is out now from Orenda Books. You can read more about him at MichaelGrothaus.com

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