Rivian Stock Falls as Fourth-Quarter Electric Vehicle Deliveries Decline

January 2, 2024

Rivian Stock Falls as Fourth-Quarter Electric Vehicle

Shares of electric vehicle (EV) manufacturer Rivian experienced a nearly 10% drop in early trading today following the company’s report on increased vehicle production in the fourth quarter but a decrease in deliveries compared to the previous period.

Rivian disclosed that it successfully delivered 13,972 vehicles from October through December, marking a 10.2% decline from the third quarter of 2023. Despite this, the figures remained in line with the expectations set by Wall Street. Analysts surveyed by FactSet had anticipated Rivian’s delivery numbers to hover around 14,000 vehicles for the quarter.

In terms of production, Rivian saw a positive surge, manufacturing 17,541 electric vehicles (EVs) during the fourth quarter. This figure represents an increase from the 16,304 units produced in the third quarter. For the entire year, Rivian’s production at its Normal, Illinois plant reached 57,232 vehicles, surpassing the company’s full-year 2023 production guidance of 54,000 vehicles.

Investors and industry observers are keenly awaiting Rivian’s fourth-quarter earnings results, which the company is scheduled to announce after the market closes on February 21, 2024. The outcome will likely provide deeper insights into the factors contributing to the divergence between production and delivery numbers.

It’s noteworthy that Rivian’s announcement coincided with Tesla’s report on fourth-quarter deliveries, where the EV industry leader surpassed Wall Street’s expectations. Tesla revealed that it delivered 484,507 vehicles, surpassing the consensus estimate of 477,000 vehicles compiled by StreetAccount as of December 28, 2023.

As the electric vehicle market continues to evolve, investors are closely monitoring how companies like Rivian navigate the delicate balance between production scaling and meeting market demand. The upcoming earnings announcement will be pivotal in gauging Rivian’s strategy and market positioning amid the dynamic landscape of the EV industry.

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