Rivian mentioned on Wednesday it could reduce its workforce by 10% and forecast EV manufacturing this 12 months that extensively missed estimates, harm by downtime for manufacturing unit upgrades and slowing demand for electrical autos on account of excessive rates of interest.
Shares of the corporate tumbled about 17% in prolonged buying and selling after Rivian mentioned it expects to provide 57,000 autos in 2024, effectively beneath estimates of 81,700 items, in keeping with eight analysts polled by Seen Alpha. It produced 57,232 autos final 12 months.
“We firmly imagine within the full electrification of the automotive business, however acknowledge within the short-term, the difficult macro-economic situations,” CEO RJ Scaringe mentioned in a press release on Wednesday.
Amazon.com-backed Rivian has been burning by way of money to ramp up manufacturing of its R1S SUV and R1T pickup vans because it spends on constructing a brand new manufacturing unit in Georgia and loses hundreds of {dollars} on each car it builds.
The corporate’s money burn comes at a time when demand for EVs has slowed, with Tesla CEO Elon Musk warning that top rates of interest are making automobiles unaffordable.
After shying away from decreasing the value of its autos final 12 months regardless of a value struggle sparked by Tesla, Rivian this month reduce the value of its R1T pickup vans and R1S SUVs by $3,100.
In the meantime, Lucid additionally forecast manufacturing for 2024 that was a lot decrease than Wall Road’s expectations, even after it reduce costs of its Lucid Air luxurious electrical sedans final week.
Rivian’s money and money equivalents had been $7.86 billion on the finish of the December-quarter, in contrast with $7.94 billion within the previous three-month interval.
It additionally recorded a ten% fall in deliveries within the fourth quarter, lacking estimates, citing lack of deliveries to Amazon within the three-month interval to give attention to the vacation interval.
Nevertheless, income for the October-December interval stood at $1.32 billion, above Wall Road estimates of $1.26 billion, in keeping with LSEG information.
Rivian has been posting a loss on each car it sells and expects to document its first quarter of constructive gross margin later this 12 months.
The corporate’s R2 platform, which is predicted to be cheaper and smaller, is ready to be unveiled early subsequent month.
The corporate reported a web lack of $1.52 billion for the fourth quarter ended Dec. 31, in contrast with a lack of $1.72 billion a 12 months earlier.