Stocks slide as 2023 production forecast misses target

Rivian (RIVN) shares slid after the electric vehicle maker reported mixed Q4 results and a production forecast that missed the mark. The company announced that its new production guidance for 2023 will be 50,000 vehicles, below analyst estimates of around 63,000 units. Rivian also forecasts an adjusted EBITDA loss of $4.3 billion for 2023, up slightly from estimates of $4.19 billion.

From a delivery perspective, the company previously reported that it produced 10,020 vehicles and delivered 8,054 for the quarter. For the year, Rivian produced 24,337, just short of its 2022 guidance of 25,000 units, which was a positive development for the company given early production ramp-up difficulties and supply chain issues. It delivered 20,332 units for the year.

Rivian said production is still being hampered by supply chain and parts issues. “The supply chain remains the most important constraining factor of our production; During the quarter we suffered several days of production downtime due to supplier shortages. ‘ Rivian said in his letter to shareholders.

For Q4, Rivian reported the following top and bottom line numbers:

Rivian reported a net loss of $1.72 billion for the quarter, slightly better than estimates, and for 2022 Rivian reported an adjusted EBITDA loss of $5.22 billion, below its guidance of $5.45 billion US dollars for the year.

At the end of the third quarter, Rivian said it had 114,000 pre-orders for its R1T and R1S vehicles, although the company surprisingly said it would not be releasing pre-order dates going forward.

A Rivian sport utility vehicle is seen on Wednesday February 22, 2023 in Austin, Texas. (AP Photo/Eric Gay)

A Rivian sport utility vehicle is seen on Wednesday February 22, 2023 in Austin, Texas. (AP Photo/Eric Gay)

However, any kind of pre-order guidance is still important. “With this macro backdrop and shipping delays, the question is whether consumers are canceling orders either because of the weaker macro backdrop or simply because Rivian’s current manufacturing output is taking so much time, and if there is a noticeable churn rate in this area,” Wedbush noted Analyst Dan Ives.

Rivian offered some positive news to its reservation holders, with the company predicting that the Max Pack battery variants will be available for both the R1T pickup and the R1S SUV by Fall 2023. The Max Pack increases the range of the R1T to 400 miles (up from 350 in the Large Pack) and the R1S to 390 miles (up from 340 for the Large Pack).

In terms of cash on hand, Rivian reported having cash and reserves of $12.01 billion compared to $13.3 billion in cash and cash equivalents at the end of last quarter. Rivian expects capital expenditures to total $2 billion in 2023, including investments in its forthcoming Georgia facility.

Pras Subramanian is a reporter for Yahoo Finance. you can follow him Twitter and further Instagram.

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