Daily Management Review

Rival Stock Suffers Less Damage Than Tesla As Both Miss EV Targets


Rival Stock Suffers Less Damage Than Tesla As Both Miss EV Targets
Rivian Automotive narrowly missed its full-year production target of 25,000 vehicles in 2022, the firm said in a regulatory filing.
Rivian's shares fell nearly 6% to $17.34 prior to the Securities and Exchange Commission releasing the details of the filing, but there was little movement in the shares in after-hours trade.
Rival electric car maker Tesla also reported missing its production targets for 2022 but the auto major witnessed a rougher trading day, with its shares falling more than 12% to $108.10 before resuming their downward trend after hours.
Rivian, which cut its initial 50,000 production forecast for mid-2022 in half, announced on Tuesday that it produced 24,337 vehicles at its Normal, Illinois, plant last year and delivered 20,332. It built 10,020 and delivered 8,054 units in the fourth quarter.
The shortfall in production was the latest in a string of disappointments for the young company, which went public in November 2021.
Supply-chain disruptions have put Rivian under pressure, as have other EV makers. In December, Rivian canceled a plan with Mercedes-Benz to build delivery vans in Europe. Rivian had previously delayed production of its smaller R2 vehicle family until 2026 at the company's planned $5 billion Georgia plant.
Chief Executive R.J. Scaringe said in an email to employees on Tuesday that the company built 25,051 vehicles in Normal but only 24,337 were "factory gated" – that is, cleared for delivery to customers.
More than 700 vehicles were awaiting parts, software validation, wheel alignment, and charging at the end of the year, according to Scaringe, and thus "can't count toward our official figure."
He called the final output "an incredible achievement," praising "the commitment and passion of our entire team." Scaringe cited supply-chain issues that forced the plant to close for 20 days and impacted 50 other days, as well as bad weather that forced the factory to close for five more days.
Rivian's stock price has plummeted in the 14 months since it went public. The company's shares closed December 30 at $18.43, down from a high of around $130 in early November 2021, and continued to fall on Tuesday.
Rivian's market value has dropped below $15 billion after reaching a high of well over $100 billion shortly after its IPO.
Rival Tesla's stock plummeted on Tuesday after the world's largest electric vehicle manufacturer fell short of market expectations for fourth-quarter deliveries, despite shipping a record number of vehicles.
Tesla lost another $50 billion in value on Tuesday, bringing its total value to $341 billion, a 72% drop from its $1.24 trillion peak exactly one year ago.