Irvine, California – Rivian’s stock price plummeted after reporting a disappointing fourth quarter and an underwhelming production and profit forecast for the year. The electric adventure vehicle maker fell short of Wall Street’s expectations, projecting 57,000 units for 2024, well below the anticipated 80,000 units.
In addition to the production forecast shortfall, Rivian’s adjusted EBITDA loss is expected to be $2.70 billion, while capital expenditure outlays are projected to hit $1.75 billion. The company also announced a 10% cut in salaried staff due to economic uncertainty. This news caused the stock to drop over 15% in after-hours trading.
Rivian’s fourth quarter results also reflected mixed performance, with top-line revenue reaching $1.32 billion, slightly exceeding the estimate of $1.25 billion, but still incurring an adjusted loss per share of $1.36. Despite this, Rivian reported a narrower adjusted EBITDA loss compared to the previous year.
CEO RJ Scaringe is optimistic about the company’s future, emphasizing the long-term potential of the automotive industry’s full electrification. However, he acknowledged the current challenging macro-economic conditions and the need for cost efficiency and positive margins in the short term.
Rivian’s cash cushion decreased to $7.857 billion at the end of the fourth quarter, down from $9.1 billion in the previous quarter. The company also fell short of consensus delivery estimates with 13,972 deliveries in Q4, although production exceeded expectations at 17,541 units.
Looking ahead, Rivian reiterated its forecast of reaching “modest gross profit” by the end of 2024, reinforcing the company’s commitment to long-term growth and financial stability. The upcoming reveal of its more affordable R2 EV and the completion of its Georgia assembly plant in 2025 further reflect Rivian’s strategic initiatives for future expansion and profitability.