Rivian Automotive Inc. experienced its sharpest decline in almost three months as the company’s year-end electric vehicle (EV) deliveries fell short of expectations. The maker of electric trucks and SUVs reported that it built 17,541 EVs in the final quarter of 2023 but delivered only 13,972, marking a sequential decline from the prior period and missing analysts’ average estimate of 14,114.
As a consequence of the shortfall, Rivian’s shares dropped by 11% as of 3:06 p.m. in New York, representing the largest intraday decline since October 5. This decline comes after a 27% rise in the stock throughout the previous year.
The challenges faced by Rivian are highlighted by the delivery gap, especially in a year marked by persistent supply-chain issues and a slowdown in the growth of the EV market. Rivian, based in Irvine, California, manufactures two EVs for consumers—a pickup and an SUV—along with a battery-electric delivery van for its largest shareholder, Amazon.com Inc.
Bloomberg Intelligence analysts noted that the quarterly figures suggest overproduction amidst weakening EV demand as Rivian increases its plant capacity. The analysts predict that Rivian may not achieve cash-flow breakeven until 2026.
Rivian executives had previously indicated on the third-quarter earnings call that commercial EVs might experience a shortfall due to Amazon’s practice of limiting the intake of new vans during busy holiday quarters. Despite the seasonal impact on Amazon deliveries, Truist Securities Analyst Jordan Levy cautioned investors against placing too much significance on the “mild” quarterly miss. Cantor Fitzgerald analyst Andres Sheppard suggested that Rivian will now aggressively pursue new sales after Amazon ended an exclusivity agreement in November.
All of Rivian’s production currently takes place at a single facility in Illinois, with plans for a second plant in Georgia scheduled to start production on future models in 2026. The company exceeded its 2023 production guidance by producing 57,232 units across all three model lines, delivering 50,122 vehicles. However, Rivian did not provide production or delivery guidance for the year 2024.
