© Reuters. A Rivian R1T pickup, the Amazon-backed electrical car (EV) maker, is pushed outdoors the Nasdaq Market website through the firm’s IPO in Instances Sq. in New York Metropolis, U.S., November 10, 2021. REUTERS/Brendan McDermid
By Akash Sriram and Paul Lienert
(Reuters) – Rivian Automotive Inc warned on Thursday that supply-chain points might lower its deliberate manufacturing in half in 2022 to 25,000 autos, sending shares of the EV maker down greater than 12% in prolonged buying and selling.
Rivian stated as of March 8, it had constructed 1,410 autos this yr, and a pair of,425 because the begin of manufacturing. It stated that through the two weeks previous to March 8 it averaged a weekly manufacturing charge that was about twice the exit charge of the fourth quarter of 2021, however it expects supply-chain constraints to proceed by way of 2022.
“As we proceed to ramp up our manufacturing facility, handle provide chain challenges, face continued inflationary pressures and decrease value will increase to prospects within the close to time period, we count on to acknowledge damaging gross margins all through 2022,” the corporate stated in a letter to shareholders.
“The 2022 manufacturing steering was disappointing and effectively wanting what they stated of their highway present, and the fourth-quarter loss was wider than anticipated,” stated Garrett Nelson, analyst at CFRA Analysis.
Rivian, different startups and legacy automakers similar to Ford Motor (NYSE:) Co and Basic Motors Co (NYSE:) face robust competitors from market chief Tesla (NASDAQ:) Inc as they intention to begin delivering extra electrical autos within the close to future.
Rivian reported a fourth-quarter web lack of $2.46 billion, or $4.83 per share, in contrast with a year-ago lack of $353 million, or $3.50 per share. It posted income of $54 million, effectively beneath buyers’ expectations of $60 million.
Chief Govt R.J. Scaringe stated in a Thursday convention name with analysts that Rivian expects a “important” manufacturing ramp-up within the second quarter of the EDV-700 van for Amazon.com Inc (NASDAQ:).
Rivian stated it was “exploring methods to additional broaden” its business relationship with Amazon, which owns a 20% stake within the startup and has ordered 100,000 vans. Rivian stated it is going to start producing a second Amazon van this yr, the EDV-500, which is shorter and narrower than the EDV-700.
Rivian stated it had 83,000 pre-orders for its R1T pickup and R1S utility car as of March 8, up from 71,000 in mid-December.
As of Thursday’s market shut, Rivian’s share value had dropped about 77% and misplaced $124.5 billion in market capitalization since hitting its peak after going public in November.
The corporate ended the quarter with $18.4 billion in money and equivalents.
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