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Rivian Automotive (RIVN.O) faced setbacks in the fourth quarter of 2023, missing market estimates for vehicle deliveries as challenges within the electric vehicle (EV) market took a toll. The company’s shares plummeted by nearly 10% on Tuesday in response to the disappointing figures.
Rivian handed over 13,972 vehicles in the final quarter, marking a 10% decline from the previous quarter and falling short of the estimated 14,430, according to a poll of 13 analysts by Visible Alpha.
The surge in interest rates in the United States played a pivotal role, driving up monthly payments for electric vehicles and denting demand. This situation triggered a competitive pricing war initiated by Tesla (TSLA.O), the market leader.
Vitaly Golomb, a Rivian investor and expert in electric and autonomous mobility, suggested that holiday schedules likely contributed to a slowdown in deliveries compared to production figures during this period.
Despite delivery challenges, Rivian ramped production, manufacturing 17,541 vehicles in the last quarter of 2023, reflecting a 7.5% increase from the previous quarter. This pushed the annual production to 57,232 units, surpassing the forecasted 54,000 units.
While Rivian’s stock experienced a plunge in October due to concerns over its financial health following an unexpected bond issuance, the company is perceived as in a relatively favorable position compared to other EV startups like Lucid (LCID.O) and Fisker (FSR.N).
Rivian has refrained from price reductions on its vehicles, instead banking on sustainable demand.
Notably, after its exclusivity pact with Amazon ended, the company recently inked a deal with U.S. wireless carrier AT&T (T.N) for its electric vehicles.
Analysts speculate that Rivian’s R1T pickup truck, starting at $73,000, may not face significant competition from Tesla’s Cybertruck, which was unveiled in late November.
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